Sep 192019
 
 September 19, 2019  Posted by at 9:33 am Finance Tagged with: , , , , , , , , , , , ,  9 Responses »


Pablo Picasso Cafe Royan [The Coffee] 1940

 

Foreign Exchange Trading Soars to $6.6 Trillion a Day, US Dollar is King (WS)
Repo Chaos Tests Wall Street Confidence In NY Fed’s Williams (R.)
Prosecutors, Regulators Broaden JPMorgan Precious Metals Desk Probe (CNBC)
Rothschild Emerges From Shadows For Centenary Of London Gold Fixing (Manly)
Debt-Wracked Chinese Companies Dump US & Other Foreign Assets (WS)
UK Has 12 Days To Set Out Brexit Plans – Finnish PM (BBC)
Purdue Pharma Seeks To Halt Opioid Suits Against Company, Sacklers (R.)
NYT’s 14,000 Words That Whitewash Boeing Of 737 MAX Failure (MoA)
Japan Court Acquits TEPCO Bosses Over Fukushima Disaster (AFP)
Scientists Set Out How To Halve Greenhouse Gas Emissions By 2030 (G.)
Why Can’t We Agree On What’s True Anymore? (G.)

 

 

How much of this has any use to society?

Foreign Exchange Trading Soars to $6.6 Trillion a Day, US Dollar is King (WS)

It happens every three years: The Bank for International Settlements released its Triennial Central Bank Survey about the global foreign exchange (FX) and over-the-counter (OTC) derivatives markets, as it occurred in April. The numbers are ginormous, and get more ginormous with every survey, with trading volume measured in trillions of dollars per day. This is a huge data trove, and I will focus here on global FX trading. To start with, there are the amounts. Currencies are traded in pairs, such as the US dollar against the euro. In April 2019, trading in FX markets reached $6.59 trillion per day, up 30% from the prior survey period, April 2016. Trades with the USD on one side of the trade averaged $5.82 trillion per day in April 2019. This was up 31% from the daily average in April 2016 and was over five times the daily average in April 2001:

The sudden appearance of the euro in 2001 as the second largest currency out of nowhere indicates that at that time, it had just replaced five currencies, including the biggie, the Deutsche Mark. The chart above shows the top 16 most traded currencies. Four have a significant share – USD, EUR, Japanese yen (JPY), and British Pound (GBP). The remaining 12 of the top 16 currencies are the limp spaghetti at the bottom of the chart, including the Chinese renminbi (CNY). In terms of the share that a currency is on one side of a trade, the US dollar remains total King, at 88.3%.

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Ohm get real: “..Williams has the unique task of overseeing regulation of Wall Street and execution of monetary policy.”

Repo Chaos Tests Wall Street Confidence In NY Fed’s Williams (R.)

Wild swings this week in U.S. money markets have raised fresh concerns about whether the New York Federal Reserve under John Williams has lost its deft touch with markets. The New York Fed had to intervene in cash markets this week when the repo rate, a key measure of liquidity in the global banking system, sky-rocketed, forcing the Fed to make an emergency injection of more than $125 billion on Tuesday and Wednesday. A key interest rate the Fed aims to influence also broke above the central bank’s target range on Tuesday for the first time since the financial crisis. “What has happened in the repo market is far from a minor problem,” said Ward McCarthy, chief financial economist for Jefferies. “That’s a financial crisis waiting to happen if they don’t get that under control.”


As the head of the New York Fed, Williams has the unique task of overseeing regulation of Wall Street and execution of monetary policy. [..] Fed Chair Jerome Powell defended the central bank’s response to the liquidity crunch on Wednesday, saying officials saw the cash shortage coming and “took appropriate actions” to address the issue. “We don’t see this as having any implications for the broader economy,” Powell told reporters after the Fed announced at the close of a two-day policy meeting that it would reduce its benchmark overnight lending rate to a range of 1.75% to 2.00%. “We took appropriate actions to address those pressures and those measures were successful. If we experience another episode in money markets we have the tools to address those pressures.”

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Is this one of those things that will continue into 2050?

Prosecutors, Regulators Broaden JPMorgan Precious Metals Desk Probe (CNBC)

Federal prosecutors and regulators are expanding their already aggressive investigations of allegedly fraudulent precious metals trades at J.P. Morgan Chase to other U.S. markets and financial firms, CNBC has learned. The broader inquiry into market manipulation of all kinds comes amid a spike in criminal prosecutions and civil actions in the past year involving so-called “spoofing” in the precious metals markets. Prosecutors have broadened their investigation in part due to information received from traders questioned for spoofing-related charges. Information from those traders has led to criminal charges against other individuals, according to people familiar with the probes who spoke with CNBC on the condition of anonymity due to the nature of the ongoing investigations.


The widening inquiry is being led by the Justice Department and the U.S. Commodity Futures Trading Commission as they continue their pursuit of individuals and firms for manipulating U.S. markets. The scope of the investigations has grown to the point where the criminal fraud division of the Justice Department expects to add personnel to the existing team to assist with the investigations and prosecutions of cases.Spoofing is the practice of a trader placing a buy or sell order for a commodity or stock with the intent to cancel the order before it can be executed. The goal of the tactic is to affect the price of the futures contract or share to benefit a preexisting trading position.

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At least JPMorgan isn’t doing anything new…

Rothschild Emerges From Shadows For Centenary Of London Gold Fixing (Manly)

This month in London marks the 100th anniversary of the first “London Gold Fixing”, the infamous daily meeting of a secretive cartel of bullion banks which has met since 1919 to set benchmark gold prices used throughout the international gold market, a meeting which continues to this day through its thinly disguised successor, the LBMA Gold Price auction. London gold price benchmarks are critically important to the global gold market because they are used as a valuation source for everything from ISDA gold interest rate swap contracts to gold-backed Exchange Traded Funds (ETFs), and everything from OTC gold contracts to transaction reference prices used by physical bullion dealers when purchasing gold bars and gold coins from refineries and suppliers.

Since 2015, the London Gold Fixing has been known as the LBMA Gold Price following a rush by the London Bullion Market Association (LBMA) bullion banks to patch over the then scandalized ‘Fixing’ in a smoke and mirrors and circle the wagons relaunch and renaming exercise. The collusive Gold Fixing first formally came into existence on 12 September 1919 when the Bank of England tapped its favorite bankers N.M. Rothschild & Sons to be the daily Fixing’s permanent chairman. Rothschild and the Bank of England had been joined at the hip since the early 1800s and would continue to be so in the Gold Fixing throughout the next century.

[..] For the next 85 years from its inception in September 1919, the Gold Fixing occurred daily at Rothschild’s headquarters in New Court, St. Swithins Lane, across the road from the Bank of England, with five men from five bullion banks religiously meeting at 10:30 am each morning. After the collapse of the London Gold Pool in 1968, the Gold Fixing moved to a twice per day pricing with an extra 3:00 pm meeting added by the fixers to ‘watch over’ the US morning hours gold market.

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Beijinng needs dollars, guys.

Debt-Wracked Chinese Companies Dump US & Other Foreign Assets (WS)

Chinese conglomerates that had gone on a debt-fueled buying binge over the past decade but have come under heavy pressure from the government to sell their overseas holdings in order to reduce their astronomical debts – well, they’re doing it. In the US, Chinese conglomerates have dumped $26 billion in assets so far in 2019, up from $8 billion in the full year of 2018. Globally, Chinese companies have agreed to sell about $40 billion in overseas assets so far this year. This now exceeds the already heavy pace of selling for the full year of 2018, which totaled $32 billion, according to data from Dealogic cited by the Financial Times. But the buying hasn’t totally stopped: So far this year, Chinese companies have acquired $35 billion in assets globally.


This made Chinese companies a net seller of overseas assets for the first time in the data going back to 2009. In 2015, Chinese conglomerates sold only $10 billion of overseas assets but acquired $100 billion of assets, for a net increase of $90 billion. In 2016, the peak of China’s debt-fueled, haphazard, glory-driven acquisition binge, these conglomerates acquired over $200 billion in assets overseas, as observers scratched their heads, while sellers laughed all the way to the bank.

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Johnson says he wants to keep plans secret, EU says that’s because he has no plans. They haven’t seen any.

UK Has 12 Days To Set Out Brexit Plans – Finnish PM (BBC)

Boris Johnson has 12 days to set out his Brexit plans to the EU, according to Finland’s prime minister. Antti Rinne said he and French President Emmanuel Macron agreed the UK needed to produce the proposals in writing by the end of September, adding if not, “then it’s over”. Finland currently holds the EU’s rotating presidency. A Downing Street source said: “We will continue negotiating and put forward proposals at the appropriate time.” Mr Johnson has said a deal is possible at a crucial summit of EU leaders on 17 October, but he has insisted Brexit will happen by the 31 October deadline, even if a deal is not agreed.


The UK government said talks with the EU have been making progress since Mr Johnson came into No 10 in July. It said it had put forward “a number of proposals” as alternatives to the Irish border backstop – the policy aimed at preventing the return of a hard border on the island of Ireland and a key sticking point in former PM Theresa May’s Brexit deal. But Mr Johnson has repeatedly refused to reveal details of the proposals in interviews, saying he did not want to negotiate in public. The EU has continued to criticise the UK for not putting any plans in writing.

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From CBS: “Sixteen states have sued family members by name, alleging they steered Purdue while draining more than $4 billion from the company since 2007.”

Purdue Pharma Seeks To Halt Opioid Suits Against Company, Sacklers (R.)

OxyContin maker Purdue Pharma LP on Wednesday asked a U.S. bankruptcy judge to halt for roughly nine months more than 2,600 lawsuits alleging the company and its controlling Sackler family helped fuel the U.S. opioid crisis, according to court documents. In addition to seeking a pause in widespread litigation against it, Purdue also asked U.S. Bankruptcy Judge Robert Drain to shield the wealthy Sacklers from related opioid lawsuits they face. Purdue filed for Chapter 11 bankruptcy protection on Sunday after reaching an outline of a deal it estimated to be valued at more than $10 billion with states and local governments that brought the bulk of the cases. They allege the company deceptively marketed opioids by overstating benefits and downplaying risks.


Purdue has been accused of contributing to a public health crisis that has been marked by nearly 400,000 overdose deaths between 1999 and 2017, according to the latest U.S. data. Purdue and the Sacklers have denied they are liable for the opioid epidemic. Purdue said in Wednesday’s court filing that an injunction halting litigation would preserve money that would otherwise be drained through prolonged legal battles. Purdue is spending more than $5 million a week in legal and professional fees, and other related expenses, the company said in court papers. [..] In Wednesday’s court filing, Purdue said allowing litigation against the Sacklers to continue would threaten billions of dollars they have pledged toward settling lawsuits and increase expenses for the company as it is drawn into the cases.

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Picked apart.

NYT’s 14,000 Words That Whitewash Boeing Of 737 MAX Failure (MoA)

The New York Times Magazine just published a 14,000 words piece about the Boeing 737 MAX accidents. It is headlined: “What Really Brought Down the Boeing 737 Max?” But the piece does not really say what brought the Boeing 737 MAX down. It does not explain the basic engineering errors Boeing made. It does not explain its lack of safety analysis. It does not mention the irresponsible delegation of certification authority from the Federal Aviation Administration to Boeing. There is no mention of the corporate greed that is the root cause of those failures. Instead the piece is full of slandering accusations against the foreign pilots of the two 737 MAX planes that crashed. It bashes the airlines and the safety authorities of Indonesia and Ethiopia.

It only mildly criticizes Boeing for designing the MCAS system that brought the planes down. The author of the piece, William Langewiesche, was a professional pilot before he turned to journalism. But there is so much slander in the text that it might as well have been written by Boeing’s public relations department. The piece is also riddled with technical mistakes. We will pick on the most obvious ones below. The following is thus a bit technical and maybe too boring for our regular readers. Langewiesche describes the 737 MAX trim system and its failure mode:

“That’s a runaway trim. Such failures are easily countered by the pilot — first by using the control column to give opposing elevator, then by flipping a couple of switches to shut off the electrics before reverting to a perfectly capable parallel system of manual trim. But it seemed that for some reason, the Lion Air crew might not have resorted to the simple solution.” Wrong: The manual trim system does not work at all when the stabilizer is widely out of trim (i.e. after MCAS intervened) and/or if the plane is flying faster than usual. That is why the European regulator EASA sees it as a major concern and wants it fixed.

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They blame the government.

Japan Court Acquits TEPCO Bosses Over Fukushima Disaster (AFP)

A Japanese court on Thursday cleared three energy firm bosses of professional negligence in the only criminal trial stemming from the 2011 Fukushima nuclear meltdown. The three men were senior officials at the TEPCO firm operating the Fukushima Daiichi plant and had faced up to five years in prison if convicted. “All defendants are not guilty,” the presiding judge said, ruling that the executives could not have predicted the scale of the tsunami that overwhelmed the plant and triggered the accident. The decision is likely to be appealed, extending the legal wrangling over responsibility for the worst nuclear accident since Chernobyl, more than eight years after the disaster. Outside the courtroom, dozens of people staged a rally, including some who had travelled from the Fukushima region to hear the verdict.


“It is absolutely an unjust ruling. We absolutely cannot accept this,” one woman said angrily, addressing the crowd. “We will appeal this and continue our fight,” shouted a man nearby. The three former executives were accused of professional negligence resulting in death and injury for failing to act on information about the risks from a major tsunami, but they argued the data available to them at the time was unreliable. Judge Kenichi Nagafuchi said the verdict turned on the “predictability” of the massive tsunami that swamped the nuclear plant in March 2011 after a 9.0-magnitude undersea earthquake. He pointed out there had been no proposal from the government’s nuclear watchdog “that TEPCO should suspend operations until (safety) measures are taken.”

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Any and all of such proposals that doesn’t focus on using much less energy, but instead on ‘transition’, is not worth reading.

Scientists Set Out How To Halve Greenhouse Gas Emissions By 2030 (G.)

Greenhouse gas emissions could be halved in the next decade if a small number of current technologies and behavioural trends are ramped up and adopted more widely, researchers have found, saying strong civil society movements are needed to drive such change. Solar and wind power, now cheaper than fossil fuels in many regions, must be scaled up rapidly to replace coal-fired generation, and this alone could halve emissions from electricity generation by 2030, according to the Exponential Roadmap report from an international group of experts. If the rapid uptake of electric vehicles in some parts of the world could be sustained, the vehicles could make up 90% of the market by 2030, vastly reducing emissions from transport, it said.

Avoiding deforestation and improving land management could reduce emissions by the equivalent of about 9bn tonnes of carbon dioxide a year by 2030, according to the report, but contradictory subsidies, poor planning and vested interests could stop this from happening. Key to any transition will be the growing social movements that are pressing for urgent action on climate breakdown. By driving behavioural change, such as moving away from the overconsumption of meat and putting pressure on governments and companies, civil movements have the power to drive the transformation needed in the next decade, say the report’s authors.

Christiana Figueres, a former top climate official at the UN, said: “I see all evidence that social and economic tipping points are aligning. We can now say the next decade has the potential to see the fastest economic transition in history.” The experts identified 36 developments that would produce the emission cuts needed, from renewable energy to changes in food production, the design of cities, and international transport, such as shipping. All of them are judged possible to achieve by 2030.

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A wild guess: because the Guardian, which published this piece, has published so many things that are not true?

Why Can’t We Agree On What’s True Anymore? (G.)

We live in a time of political fury and hardening cultural divides. But if there is one thing on which virtually everyone is agreed, it is that the news and information we receive is biased. Every second of every day, someone is complaining about bias, in everything from the latest movie reviews to sports commentary to the BBC’s coverage of Brexit. These complaints and controversies take up a growing share of public discussion. Much of the outrage that floods social media, occasionally leaking into opinion columns and broadcast interviews, is not simply a reaction to events themselves, but to the way in which they are reported and framed. The “mainstream media” is the principle focal point for this anger. Journalists and broadcasters who purport to be neutral are a constant object of scrutiny and derision, whenever they appear to let their personal views slip.


The work of journalists involves an increasing amount of unscripted, real-time discussion, which provides an occasionally troubling window into their thinking. But this is not simply an anti-journalist sentiment. A similar fury can just as easily descend on a civil servant or independent expert whenever their veneer of neutrality seems to crack, apparently revealing prejudices underneath. Sometimes a report or claim is dismissed as biased or inaccurate for the simple reason that it is unwelcome: to a Brexiter, every bad economic forecast is just another case of the so-called project fear. A sense that the game is rigged now fuels public debate.

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An orphaned baby reticulated giraffe embraces wildlife keeper. Photo: Amy Vitale

 

 

 

 

 

Sep 182019
 
 September 18, 2019  Posted by at 9:40 am Finance Tagged with: , , , , , , , , , ,  10 Responses »


Henri Matisse Antibes 1908

 

Fed Concludes First Repo In A Decade Amid Liquidity Panic (ZH)
Big Banks Score Win As FDIC Proposes Easing Post-Crisis Derivatives Rules (R.)
Oil Steadies After Saudi Pledges To Restore Output Lost In Attacks (R.)
Without Accountability, There Can Never Be Trust in Our Government (Cates)
House Panel Asks Boeing CEO To Testify October 30 on 737 MAX (R.)
Ethiopian Crash Victims Want 737 MAX Documents From Boeing, FAA (R.)
Editorial Mistake My Ass (Mish)
Democrats Urge New Probe Of Kavanaugh, Impeachment Inquiry (R.)
Trudeau Reassures Allies Amid Alleged Spying Case (BBC)
Catastrophic Effects Of Working As A Facebook Moderator (G.)
US Government Is Suing Edward Snowden For His Book Profits (Verge)

 

 

Oh yeah, let’s save the bankers again….

Fed Concludes First Repo In A Decade Amid Liquidity Panic (ZH)

Update 4: It’s over: after a torrid 30 minutes in which the NY Fed first announced a repo operation, then announced the repo was canceled due to technical difficulties, then mysterious the difficulties went away just minutes later, at precisely 10:10am, the Fed concluded its first repo operation in a decade, which while not topping out at the $75 billion max, was nonetheless a significant $53.15 billion, split as follows: • $40.85BN with TSYs as collateral at a 2.1% stop out rate • $0.6BN with Agencies as collateral at a 3.0% stop out rate • $11.7BN with Mortgage-backed securities as collateral at a 2.1% stop out rate. While the Fed did not disclose how many banks participated in the operation, it is safe to say it was a sizable number.


Worse, the result from today’s unexpected repo operation, we can now conclude that in addition to $1.3 trillion in ‘excess reserves’, a Fed which is now cutting rates and will cut rates by 25bps tomorrow, the US financial system somehow found itself with a liquidity shortfall of $53 billion that almost paralyzed the interbank funding market. Oh, and for those wondering why the Fed did a repo, the answer is simple: it did not want to launch QE just yet. But make no mistake, once repo is insufficient, the Fed will have no choice but to escalate to the next step which is open market purchases. Which brings us to the bigger question of how long such overnight repos will satisfy the market, and how long before the next repo rate spike prompts the Fed to do the inevitable, and restart QE. At least president Trump will be delighted.

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And while we’re saving their multi-million bonuses, let’s throw them some more bones,..

Big Banks Score Win As FDIC Proposes Easing Post-Crisis Derivatives Rules (R.)

A U.S. banking regulator on Tuesday proposed easing a rule requiring banks to set aside cash to safeguard derivatives trades between affiliates, marking one of the biggest wins for Wall Street lenders under the business-friendly Trump administration. The proposal, by the Federal Deposit Insurance Corporation, could potentially free $40 billion across the nation’s largest banks, according to a 2018 survey by the International Swaps and Derivatives Association (ISDA), the global trade group that has been lobbying for the rule change for years.


The proposal is subject to public comment and will likely face resistance from Democratic lawmakers and consumer groups, who have warned that chipping away at regulations put in place following the 2007-2009 financial crisis could sew the seeds of the next one. Countries across the globe introduced a slew of rules to rein in the global over-the-counter derivatives market after big bets on credit swaps brought firms including Lehman Brothers and AIG to their knees.

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Was there any damage at all? Didn’t I read that they hit a bunch of empty tanks?

Oil Steadies After Saudi Pledges To Restore Output Lost In Attacks (R.)

Oil prices were little changed on Wednesday, steadying after Saudi Arabia said it will restore by the end of the month production lost in weekend attacks on its facilities. Prices plummeted 6% on Tuesday after Saudi Arabia’s energy minister said the country had managed to restore oil supplies to customers to where they stood before the attacks on its facilities that shut 5% of global oil output by drawing from its huge inventories. But tension in the region remained elevated after the United States said it believed the attacks on the world’s top oil exporter originated in southwestern Iran. Iran has denied involvement in the strikes.


Brent crude oil futures were flat at $64.55 a barrel by 0732 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 15 cents, or 0.1%, to $59.19 a barrel, after sinking 5.7% on Tuesday. “Considering limited spare (production) capacity outside Saudi Arabia and risks of renewed attacks on Saudi energy infrastructure, a risk premium is likely to stay on oil prices in the foreseeable future,” UBS analysts said in a note. Energy Minister Prince Abdulaziz bin Salman said on Tuesday that average oil production in September and October would be 9.89 million barrels per day and that the world’s top oil exporter would ensure full oil supply commitments to its customers this month.

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Not sure Bill Barr is your man.

Without Accountability, There Can Never Be Trust in Our Government (Cates)

The Watergate scandal, at its heart, was about political operatives working on behalf of the Nixon administration (informally known as “The Plumbers”) attempting to plant bugs in the phones of the Democratic National Committee (DNC) headquarters at the Watergate Hotel, so they could spy on key Democratic campaign communications. A little-remembered fact is that bugs had been successfully planted earlier; the burglars were returning to plant a new set in the phones because the first set never worked properly. It was during this second foray into DNC headquarters in the middle of the night that they were caught by an observant security guard.

So the Watergate scandal was based on an attempt to spy on political opponents, but no evidence ever surfaced that any successful spying was actually done. The first set of listening devices never functioned, and the operatives were caught while trying to replace them. That won’t be the case in the Spygate scandal, because this wasn’t an off-the-books dirty tricks group like The Plumbers running an operation against the Trump campaign. This was the federal government itself, making use of the official engines of its intelligence and law enforcement agencies and surveillance courts to spy on a political campaign and, then, a presidency. And it’s because this scandal is so much worse than Watergate that the persons responsible for it must be held accountable for their actions.

[..] The crimes here amount to a deliberate attempt to subvert the federal intelligence and law enforcement agencies and turn them into political engines of partisan policy to shield political friends and destroy political enemies. After covering up serious crimes committed by their political friends, these key government officials used their offices to manufacture crimes to use as a pretext to investigate and punish their political enemies. Unless this behavior is punished with the utmost severity, no one will ever be able to place trust in the federal government. The ball of accountability will soon end up in the court of U.S. Attorney General William Barr.

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I for one have little faith in Congress in this case. Not that I have much faith in Congress in general.

House Panel Asks Boeing CEO To Testify October 30 on 737 MAX (R.)

The U.S. House Transportation and Infrastructure Committee formally asked Boeing CEO Dennis Muilenburg on Tuesday to testify on the now grounded 737 MAX that has been involved in two deadly crashes since October 2018 that killed 346 people. The panel’s chair, Representative Peter DeFazio, also asked John Hamilton, the chief engineer of Boeing’s Commercial Airplanes division, to appear. Both executives have been asked to testify on Oct. 30. Last week, DeFazio asked Muilenburg to make several employees available for interviews as part of a congressional probe into the design, development and certification of 737 MAX aircraft. “Boeing has received the Committee’s invitation and is reviewing it now. We will continue to cooperate with Congress and regulatory authorities as we focus on safely returning the MAX to service,” a Boeing representative said in a statement.

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But will they get them? Boeing will just claim they would reveal company secrets.

Ethiopian Crash Victims Want 737 MAX Documents From Boeing, FAA (R.)

A lawyer for victims of Ethiopian Airlines Flight 302 said on Tuesday he wants Boeing Co and the U.S. Federal Aviation Administration to hand over documents about the decision to keep the Boeing 737 MAX in the air after a deadly Lion Air crash last October. A week after Lion Air Flight 610 nose-dived into the Java Sea, killing all 189 aboard, the FAA warned airlines that erroneous inputs from an automated flight control system’s sensors could lead the jet to automatically pitch its nose down, but the agency allowed the jets to continue flying. Five months later, the same system was blamed for playing a role when ET302 crashed on March 10, killing all 157 passengers and crew and prompting a worldwide grounding of the 737 MAX that remains in place.


“The decisions to keep those planes in service are key,” Robert Clifford of Clifford Law Offices, which represents families of the Ethiopian crash victims, said at a status hearing before U.S. Judge Jorge Alonso in Chicago. Nearly 100 lawsuits have been filed against Boeing by at least a dozen law firms representing families of the Ethiopian Airlines crash victims, who came from 35 different countries, including nine U.S. citizens and 19 Canadians. Families of about 60 victims have yet to file lawsuits but plaintiffs’ lawyers said they anticipate more to come. Most of the lawsuits do not make a specific dollar claim, though Ribbeck Law Chartered has said its clients are seeking more than $1 billion.

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The entire Kavanaugh thing is empty, just two women trying to sell a book. Trump said he should sue them. But as a Supreme Court judge, perhaps he shouldn’t.

Editorial Mistake My Ass (Mish)

As details emerge in the New York Times Kavanaugh scandal, it’s very clear the NYT repeatedly made serious errors On September 14, the New York Times resurrected unsubstantiated and graphic rumors about Supreme Court Justice Brett Kavanaugh in a purposeful smear article Brett Kavanaugh Fit In With the Privileged Kids. She Did Not. The article was by disgraced NYT authors Robin Pogrebin and Kate Kelly to promote their upcoming book “The Education of Brett Kavanaugh: An Investigation.” I do not normally report on sleaze but to understand what the NYT did, I have to. Here is one controversial paragraph: “We also uncovered a previously unreported story about Mr. Kavanaugh in his freshman year that echoes Ms. Ramirez’s allegation. A classmate, Max Stier, saw Mr. Kavanaugh with his pants down at a different drunken dorm party, where friends pushed his penis into the hand of a female student.”


The NYT later added this correction. “The book reports that the female student declined to be interviewed and friends say that she does not recall the incident. That information has been added to the article.” Making matters worse for itself, the NYT came out and blamed it all on an “editing error”. Reporters Robin Pogrebin and Kate Kelly said in an interview on MSNBC that they wrote in the draft of their Sunday Review piece that a woman who Kavanaugh was said to have exposed himself to while a student at Yale had told others she had no recollection of the alleged incident. Their editors, they say, removed the reference. “It was just sort of. . . in the haste of the editing process,” said Pogrebin.

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But this is where the non-story leads to. Kamala seeks a way to reinvent her campaign, the rest just follows.

Democrats Urge New Probe Of Kavanaugh, Impeachment Inquiry (R.)

U.S. Senator Kamala Harris on Tuesday urged a House of Representatives panel to investigate Supreme Court Justice Brett Kavanaugh, while a Democratic lawmaker filed an impeachment resolution in the wake of new allegations of sexual misconduct by the conservative judge when he was in college in the 1980s. The moves by Harris, one of 20 Democratic presidential candidates, and Representative Ayanna Pressley, a progressive on the left of the party, signaled impatience among some Democrats with congressional leaders unenthusiastic about pursuing Kavanaugh’s impeachment, though their efforts appeared unlikely to spur action.

Harris said in a letter to House Judiciary Committee Chairman Jerrold Nadler that the panel should “hold Mr. Kavanaugh accountable for his prior conduct and testimony.” Nadler on Monday faulted the FBI’s probe of prior sexual misconduct allegations against Kavanaugh ahead of his narrow confirmation by the Senate in October 2018, saying in a radio interview it “apparently was a sham.” But Nadler also said his panel had its “hands full” with investigating Republican President Donald Trump. In her letter to Nadler, Harris suggested the House Judiciary Committee could create a task force and retain outside counsel if it did not have the time or resources to pursue an inquiry of Kavanaugh now.

Harris and several other Democratic presidential candidates called for Kavanaugh’s impeachment after the New York Times published an essay over the weekend detailing what it described as a previously unreported incident of sexual misconduct by Kavanaugh. Others include former U.S. Housing and Urban Development Secretary Julian Castro; U.S. Senators Elizabeth Warren and Cory Booker; South Bend, Indiana Mayor Pete Buttigieg; and former U.S. Representative Beto O’Rourke.

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Only a Five Eyes spy chief. And whaddaya know, there’s Bill Browder again. See from yesteday: The Magnitskiy Myth Exploded.

Trudeau Reassures Allies Amid Alleged Spying Case (BBC)

Canadian Prime Minister Justin Trudeau has moved to reassure allies in the wake of an alleged spying case with possible international implications. A senior intelligence official was charged last week with violating national security laws. Cameron Ortis had access to information coming from Canada’s global allies, the RCMP national police force said. Canada is in close contact with its intelligence partners over the case, Mr Trudeau says. “We are in direct communications with our allies on security,” the prime minister said while campaigning in Newfoundland on Tuesday. “We are also working with them to reassure them, but we want to ensure that everyone understands that we are taking this situation very seriously.” Canada is a member of the Five Eyes – the intelligence alliance that also includes the US, UK, Australia and New Zealand.


Mr Ortis, who was a director general with the police force’s intelligence unit, is accused of breaching the Security of Information Act and the Criminal Code. The charges filed against him include the “unauthorised communication of special operational information”, possessing a device or software “useful for concealing the content of information or for surreptitiously communicating, obtaining or retaining information”, and breach of trust by a public officer. [..] Mr Ortis was looking into allegations that Russian tax fraudsters had laundered millions of dollars through Canada, a US financier told Reuters. Bill Browder, a high-profile critic of Russian President Vladimir Putin, said he had met Mr Ortis twice in Canada in 2017 after alerting the RCMP to the matter.

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What exactly would you say is Facebook’s role in our society? How about in your life?

Catastrophic Effects Of Working As A Facebook Moderator (G.)

They describe being ground down by the volume of the work, numbed by the graphic violence, nudity and bullying they have to view for eight hours a day, working nights and weekends, for “practically minimum pay”. A little-discussed aspect of Facebook’s moderation was particularly distressing to the contractors: vetting private conversations between adults and minors that have been flagged by algorithms as likely sexual exploitation. Such private chats, of which “90% are sexual”, were “violating and creepy”, one moderator said. “You understand something more about this sort of dystopic society we are building every day,” he added. “We have rich white men from Europe, from the US, writing to children from the Philippines … they try to get sexual photos in exchange for $10 or $20.”


Gina, a contractor, said: “I think it’s a breach of human rights. You cannot ask someone to work fast, to work well and to see graphic content. The things that we saw are just not right.” The workers, whose names have been changed, were speaking on condition of anonymity because they had signed non-disclosure agreements with Facebook. Daniel, a former moderator, said: “We are a sort of vanguard in this field … It’s a completely new job, and everything about it is basically an experiment.” John, his former colleague, said: “I’m here today because I would like to avoid other people falling into this hole. As a contemporary society, we are running into this new thing – the internet – and we have to find some rules to deal with it.

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Pay him in Bitcoin.

US Government Is Suing Edward Snowden For His Book Profits (Verge)

The Justice Department has filed a civil lawsuit against Edward Snowden that would recover all proceeds of his recently released memoir, the department announced on Tuesday. The charges coincide with the official publication of the book, which is titled Permanent Record. Snowden’s memoir was allegedly not submitted to the CIA or NSA for pre-publication review, a required practice among former employees of intelligence agencies. As such, the department considers the book a breach of Snowden’s fiduciary obligations, and names the publishers as co-defendants in the suit.


Given the still-classified programs and materials discussed in the memoir, it is unlikely that the book would have been approved for publication by the agencies. Snowden remains a de facto fugitive from the US government, and would likely face charges under the Espionage Act if he returned to the country. But the new civil case could nonetheless cause problems for Snowden, potentially enjoining his publishers from releasing any of the proceeds from the book. Crucially, the suit does not seek to block the release of Snowden’s memoir, as doing so would be illegal under the First Amendment.

Read more …

 

From Notes on the Next War, 1935

 

 

 

 

 

Sep 142019
 
 September 14, 2019  Posted by at 9:51 am Finance Tagged with: , , , , , , , , , , ,  9 Responses »


Kazimir Malevich Spotrsmeny 1931

 

Saudi Arabia Oil Facilities Ablaze After Drone Strikes (BBC)
Julian Assange To Stay In Prison Over Absconding Fears (BBC)
More Than Ever, Mike Pompeo At Helm Of Trump Foreign Policy (AFP)
Hopes Of Clean Break With EU Are Nonsense: Ex-Brexit Official (G.)
Scores Of Councils Say Food Shortages A Risk If UK Crashes Out Of EU (Ind.)
McCabe Lawyer Presses Justice Department To Drop Criminal Case (R.)
Tectonic Rumblings (Kunstler)
Latest Russian Spy Story Looks Like Another Elaborate Media Deception (Taibbi)
Felicity Huffman Shows Rich & Famous Can Get Away With ANYTHING (RT)
Crisis-Hit Boeing Readies Huge Effort To Return 737 MAX To The Skies (R.)
A Person The Most Powerful Government In The World Wanted To Go Away (G.)
‘If I Happen to Fall out of a Window, You Can Be Sure I Was Pushed’ (Spiegel)

 

 

Wonder who’s behind this, and who will get the blame. Not the same thing.

Saudi Arabia Oil Facilities Ablaze After Drone Strikes (BBC)

Drone attacks have set alight two major oil facilities run by the state-owned company Aramco in Saudi Arabia, state media say. Footage showed a huge blaze at Abqaiq, site of Aramco’s largest oil processing plant, while a second drone attack started fires in the Khurais oilfield. The fires are now under control at both facilities, state media said. A spokesman for the Iran-aligned Houthi group in Yemen said it had deployed 10 drones in the attacks. The military spokesman told al-Masirah TV, owned by the Houthi movement and based in Beirut, that further attacks could be expected in the future. Saudi officials have not yet commented on who could be behind the attacks.


“At 04:00 (01:00 GMT), the industrial security teams of Aramco started dealing with fires at two of its facilities in Abqaiq and Khurais as a result of… drones,” the official Saudi Press Agency reported. “The two fires have been controlled.” Abqaiq is about 60km (37 miles) south-west of Dhahran in Saudi Arabia’s Eastern Province, while Khurais, some 200km further south-west, has the country’s second largest oilfield. The Abqaiq plant turns sour crude into sweet crude, producing up to 7 million barrels a day. Aramco says it is the world’s largest “crude oil stabilisation plant”. Saudi security forces foiled an attempt by al-Qaeda to attack the Abqaiq facility with suicide bombers in 2006. The Khurais oilfield came on line in 2009 and is the nation’s second-largest after Ghawar. Khurais reportedly produces 1.5 million barrels a day with estimated recoverable oil reserves of more than 20 billion barrels.

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A circus of evil clowns.

Julian Assange To Stay In Prison Over Absconding Fears (BBC)

Wikileaks co-founder Julian Assange is to remain in prison when his jail term ends because of his “history of absconding”, a judge has ruled. He was due to be released on 22 September after serving his sentence for breaching bail conditions. But Westminster Magistrates’ Court heard there were “substantial grounds” for believing he would abscond again. The Australian, 48, is fighting extradition to the US over allegations of leaking government secrets. He will face a full extradition hearing next year, starting on 25 February, after an extradition request was signed by the then home secretary Sajid Javid in June. Assange received a 50-week sentence in Belmarsh Prison, south-east London, after being found guilty of breaching the Bail Act in April.


He was arrested at the Ecuadorian Embassy, where he took refuge in 2012 to avoid extradition to Sweden over sexual assault allegations – which he has denied. District judge Vanessa Baraitser on Friday told Assange, who appeared by video-link: “You have been produced today because your sentence of imprisonment is about to come to an end. “When that happens your remand status changes from a serving prisoner to a person facing extradition.” She said that his lawyer had declined to make an application for bail on his behalf, adding “perhaps not surprisingly in light of your history of absconding in these proceedings”. “In my view I have substantial ground for believing if I release you, you will abscond again.”

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“Pompeo has risen because he is careful to follow Trump’s lead.”

More Than Ever, Mike Pompeo At Helm Of Trump Foreign Policy (AFP)

Speaking at the White House after John Bolton’s surprise exit as national security adviser, Secretary of State Mike Pompeo couldn’t hide a smile of satisfaction. With the departure of Bolton, Pompeo has become the undisputed king of President Donald Trump’s foreign policy – with the exception, that is, of Trump himself. The former soldier, lawyer and businessman has made a quick ascent in Washington since arriving as a Kansas congressman elected in the 2010 right-wing populist “Tea Party” movement. But many speculate that Pompeo will choose not to stay long in his newly powerful position, enticed by an opening to represent Kansas in the Senate next year – perhaps with an eye on running for the top prize in the 2024 presidential election.


First tapped as CIA director before moving to the State Department last year, Pompeo is so close to Trump that the president last year said he was his only advisor with whom he has never argued. Expectations even rose that Trump would name Pompeo to replace Bolton — a rare dual-role as national security advisor and secretary of state last held by Henry Kissinger. Trump on Thursday ruled out the possibility but called Pompeo “fantastic” and said, “I get along with him so well.” Yet Pompeo’s power, analysts say, comes with a paradox. While Bolton, a Washington insider for over four decades, bulldozed his way to steer US foreign policy to the right on issues from Iran to Venezuela, Pompeo has risen because he is careful to follow Trump’s lead.

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“..what it does is it takes us legally out of the EU. But what it can’t do is undo all of the very close economic ties that we have with the EU..”

Hopes Of Clean Break With EU Are Nonsense: Ex-Brexit Official (G.)

Claiming a no-deal Brexit represents a clean break with the European Union is “nonsensical”, according to Philip Rycroft, the former permanent secretary at the Department for Exiting the EU. Boris Johnson has promised to extricate the UK from the EU on 31 October “come what may” – and has hinted that he could try to get around legislation mandating him to request a Brexit delay. The Brexit party leader, Nigel Farage, whose party trounced the Tories in May’s European elections, has been urging the PM to deliver a “clean break Brexit” by leaving without a deal. But Rycroft, who was the most senior civil servant at DexEU until March this year, told the Guardian a no-deal Brexit would mark the beginning of a complex series of negotiations.

“It is not a clean break: what it does is it takes us legally out of the EU. But what it can’t do is undo all of the very close economic ties that we have with the EU, on which so much of our trade as a country depends. And nor would we want to undo all of the close security ties that we have with the EU,” he said. “And because of the importance of those ties both for the EU and the UK, it will remain hugely important to have those expressed through a formal relationship. In other words, we’re going to have to negotiate – and that negotiation on the future relationship starts with citizens, money and the border on the island of Ireland. “So the notion that no deal somehow means that we can turn our backs on the EU and break all our ties is just nonsensical.”


Rycroft spent part of his career at the Scottish Office and in the Scottish Executive before working in Nick Clegg’s office during the Tory-Lib Dem coalition government, and helping to coordinate Whitehall’s approach to devolution from the Cabinet Office. He gave a speech on Monday warning that politicians should be thinking carefully about how to protect the union with Scotland and Northern Ireland after Brexit – deal or no deal. “Clearly at the moment, political time has collapsed: everything has become very short term, everyone’s worrying about what’s happening not even next week but tomorrow,” he said. “In those circumstances it’s very different to be lifting their eyes to a more distant horizon. How do we manage as a country, if and when we come out of the EU?”

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Councils are powerless.

Scores Of Councils Say Food Shortages A Risk If UK Crashes Out Of EU (Ind.)

Scores of local councils have said a no-deal Brexit could result in food, medicine and fuel shortages in their constituencies – with many stating that crashing out without an agreement could lead to civil unrest and damage to social care. Official documents from 63 councils uncovered by the People’s Vote campaign have revealed local authorities fear that fundamental services could suffer and others could be cut if the UK crashes out of the EU. It follows the release of the government’s Operation Yellowhammer planning paper, which warned lorries could face delays of up to two and a half days at Dover, and that protest and public disorder would take up “significant” police resources.


Of the councils that released their Brexit “risk registers”, more than two-thirds said food shortages could grip their local area. Many also said this could lead to unchecked contaminated food entering the supply chain. More than half warned of medicine supplies being put at risk, while 59 per cent said fuel could also become scarce leading to a breakdown in their ability to deploy services – on top of the damage caused to the general public. And just under two-thirds said civil unrest, increased tensions between communities and public disorder could be sparked, including Dartford council which warned of an “increase in hate crime” as the area had “always been a target” for extreme right wing groups.

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What do you mean they can’t find evidence?

McCabe Lawyer Presses Justice Department To Drop Criminal Case (R.)

A lawyer for former FBI official Andrew McCabe pressed U.S. prosecutors on Friday to drop their politically sensitive case against him, citing reports that suggest they may be having trouble securing criminal charges. The U.S. Justice Department has been investigating McCabe, the FBI’s former No. 2 official, for more than 1-1/2 years over allegations he misled internal investigators about his decision to share internal communications with a reporter at the height of the 2016 presidential election. Prosecutors and senior officials within the Justice Department, including Deputy Attorney General Jeffrey Rosen, have recommended moving forward with criminal charges, according to sources familiar with the investigation.


But they might have encountered another hurdle. The Washington Post reported on Thursday that a federal grand jury investigating the case had been called back to consider evidence, but had left without returning an indictment. Grand juries are used in the U.S. legal system to assess the validity of possible criminal charges in major cases. To obtain an indictment, U.S. prosecutors typically need to convince the grand jury there is probable cause that a crime has been committed, which is a lower legal standard than that needed to secure a guilty verdict at trial. Proceedings are conducted in secret.

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How does Flynn pay his legal bills?

Tectonic Rumblings (Kunstler)

After Mr. Trump won the 2016 election, he moved to appoint General Flynn as his National Security Advisor. Within a few days, FBI director James Comey pulled off an entrapment gambit to incriminate General Flynn over a conversation he had with Russian Ambassador Sergey Kislyak — as if incoming high officials for foreign policy are not supposed to associate with foreign ambassadors. You understand now that the government had continued its surveillance of General Flynn for years, including tapping his phone when he moved into his White House office. That enabled Mr. Comey to set up a perjury trap. The General was successfully sandbagged this time, kicked offstage, and conned into a guilty plea. He’s been awaiting sentencing for more than a year.

A few months ago, General Flynn fired his old lawyers and hired Sidney Powell, an attorney who literally wrote the book on discovering prosecutorial misconduct in the case of Alaska Senator Ted Stevens, whose prosecution over Mickey Mouse comped hotel bills was thrown out of court by the same Judge, Emmet Sullivan, who presides in the US versus Flynn. Ms. Powell has now declared that she intends to prove “egregious prosecutorial conduct” and suppression of exculpatory evidence against the DOJ lawyers who ran the case against General Flynn. The government never would have had a case if they revealed the FBI’s internal memos on General Flynn.


Attorney Powell is seeking to have the case thrown out of court. The FBI and the DOJ lawyers who conducted the prosecution have stonewalled the court on producing the documents at issue. Judge Sullivan may sense that he’s seen this movie before. The case took on a life of its own long before William Barr was confirmed as attorney general and one wonders if he has any role in ending this damaging farce. Legal protocol may require Judge Sullivan to complete the case one way or another. I wrote in this space a year ago that General Flynn had been subject to prosecutorial misconduct. Now, I’ll venture to assert that if Judge Sullivan does not throw the case out, Mr. Trump will step in and pardon General Flynn, and in doing so will make it clear exactly how and why he was run into court in the first place.

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Matt Taibbi on the story I covered early this week in Pulp Fiction Media

Latest Russian Spy Story Looks Like Another Elaborate Media Deception (Taibbi)

It’s a characteristic of third world countries to have the intelligence world and the media be intertwined enough that it’s not always clear whether the reporters and the reported-about are the same people. When you turn on the TV in Banana Republics, you’re never sure which group is talking to you. We’re now in that same paradigm in America. CNN has hired nearly a dozen former intelligence or counterintelligence officials as analysts in the last few years. Their big get was former Director of National Intelligence James Clapper, but they also now have former deputy FBI chief Andrew McCabe, former FBI counsel James Baker, and multiple former CIA, NSA, and NSC officials.


Meanwhile, former CIA director John Brennan has an MSNBC/NBC gig, as does former CIA and DOD chief of staff Jeremy Bash, and several other ex-spooks. The Washington Post is owned by Jeff Bezos, who doubles as the CEO of one of America’s largest intelligence contractors. This odious situation is similar to 2003-2004, when cable networks were tossing contributor deals to every ex-general and ex-spook they could find while they were reporting on the Iraq invasion. At one point, FAIR.org found that 52 percent of the sources in network newscasts were current or former government officials. The numbers now aren’t quite that skewed, but CNN and MSNBC both employ former senior intelligence officials who comment upon stories in which they had direct involvement, especially the Russia investigation.

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Don’t want to turn into a gossip site, but the difference between 2 weeks and 5 years is a tad much.

Felicity Huffman Shows Rich & Famous Can Get Away With ANYTHING (RT)

That actress Felicity Huffman will go to jail for only 14 days over college entrance fraud shows there are really two justice systems in the US: one for the rich, famous and politically correct – and another for everyone else.
The ‘Desperate Housewives’ star pleaded guilty to paying $15,000 to falsify her daughter Sophia’s SAT – a college admissions test – and was sentenced to two weeks in jail, 250 hours of community service, a $30,000 fine and a year of supervised release. Altogether, a slap on the wrist to a Hollywood celebrity. It did not take long for her case to be contrasted with the fate of Tanya McDowell, a Connecticut woman who falsified a residency document in 2011 to enroll her son in a better school. McDowell ended up getting jailed for five years for first-degree larceny, and would have faced an even longer sentence had she not made a deal with prosecutors.


Comparing the two cases is absolutely apples to apples. That McDowell was later charged with selling drugs to undercover police officers and given a concurrent sentence does not change the severity of her initial punishment – 130 times longer than was meted out to Huffman. Could it be that it’s because Huffman is white and McDowell is black, and the US justice system is irreparably racist, as a lot of people have argued? Another possibility could be Huffman’s fame, fortune – and politics. After her arrest in April, Huffman was revealed to have donated over $10,000 to Democrats, including over $1,500 to the Senate campaign of Kamala Harris – the tough-on-crime prosecutor in San Francisco and California, now running for president.

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What do you guys think, will all regulators comply? How about the public? Do you want to board a 737 MAX?

Crisis-Hit Boeing Readies Huge Effort To Return 737 MAX To The Skies (R.)

As Boeing sets its sights on winning approval to fly its 737 MAX within weeks, following a six-month safety ban, engineers around the world are rolling out plans for one of the biggest logistical operations in civil aviation history. Inside Boeing’s 737 factory at Renton, Washington, south of Seattle, workers have pre-assembled dedicated tool kits for technicians tasked with installing software updates and readying over 500 jets that have sat idle for months, insiders said. Across the globe, Boeing teams are hammering out delivery schedules – and financial terms – with airline customers who have been forced to cancel flights, cut routes and fly aging jetliners while they await the MAX’s return.

Although regulators must still approve the jets for flight, Boeing and airline staff and executives say the world’s largest planemaker is weeks into an elaborate blueprint for production, maintenance and delivery that one source said involves 1,500 engineers – as many as it takes to design a small new jet. Another likened the logistics to a nation “going to war.” Boeing Commercial Airplanes Chief Engineer John Hamilton called the previously unreported mobilization more like an elaborate “ballet,” which includes synchronizing 680 suppliers of everything from carbon brakes to pilot seatbelts.


[..] Once regulators certify the MAX for flight, Boeing will have to mobilize hundreds of mechanics and pilots to bring the roughly 250 stored aircraft out of hibernation. Airlines estimate the process – which includes installing new software, changing fluids and cycling the engines – will take 100 to 150 hours per jet, and months in total for Boeing. In one example highlighting the minute risks that could upend months of planning, a team of employees is analyzing years of data on December snowfall at an airport in rural Moses Lake, Washington – where Boeing has parked some 100 jets – to predict demand for aircraft anti-freeze and runway performance.

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I know Snowden needs to sell his book, but the Guardian? Really? The paper runs a smear campaign against Assange, without whom Snowden would be in a very different set-up.

A Person The Most Powerful Government In The World Wanted To Go Away (G.)

The world’s most famous whistleblower, Edward Snowden, says he has detected a softening in public hostility towards him in the US over his disclosure of top-secret documents that revealed the extent of the global surveillance programmes run by American and British spy agencies. In an exclusive two-hour interview in Moscow to mark the publication of his memoirs, Permanent Record, Snowden said dire warnings that his disclosures would cause harm had not come to pass, and even former critics now conceded “we live in a better, freer and safer world” because of his revelations.

In the book, Snowden describes in detail for the first time his background, and what led him to leak details of the secret programmes being run by the US National Security Agency (NSA) and the UK’s secret communication headquarters, GCHQ. He describes the 18 years since the September 11 attacks as “a litany of American destruction by way of American self-destruction, with the promulgation of secret policies, secret laws, secret courts and secret wars”. Snowden also said: “The greatest danger still lies ahead, with the refinement of artificial intelligence capabilities, such as facial and pattern recognition. “An AI-equipped surveillance camera would be not a mere recording device, but could be made into something closer to an automated police officer.”


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Moscow is not such a bad place. It beats Belmarsh.

‘If I Happen to Fall out of a Window, You Can Be Sure I Was Pushed’ (Spiegel)

Book a suite in a luxury hotel in Moscow, send the room number encrypted to a pre-determined mobile number and then wait for a return message indicating a precise time: Meeting Edward Snwoden is pretty much exactly how children imagine the grand game of espionage is played. But then, on Monday, there he was, standing in our room on the first floor of the Hotel Metropol, as pale and boyish-looking as the was when the world first saw him in June 2013. For the last six years, he has been living in Russian exile. The U.S. has considered him to be an enemy of the state, right up there with Julian Assange, ever since he revealed, with the help of journalists, the full scope of the surveillance system operated by the National Security Agency (NSA).


For quite some time, though, he remained silent about how he smuggled the secrets out of the country and what his personal motivations were. Now, though, he has written a book about it. It will be published worldwide on September 17 under the title “Permanent Record.” Ahead of publication, Snowden spent over two-and-a-half hours patiently responding to questions from DER SPIEGEL.

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Vintage Australia map from 1773

 

 

 

 

 

Sep 132019
 
 September 13, 2019  Posted by at 9:44 am Finance Tagged with: , , , , , , , , , , ,  7 Responses »


Marc Chagall The watering trough 1925

 

The Dogs in the Street Know (Craig Murray)
Speaker Bercow Warns Boris Johnson Against Disobeying Brexit Law (BBC)
Former FBI Deputy Director Andrew McCabe Must Face Criminal Charges (CNBC)
US House Panel Wants Boeing To Allow Employee Interviews On 737 MAX (R.)
US Pressures Israel To Drop China ‘Belt And Road’ Investments (ZH)
Huawei CEO Offers To License 5G Technology To American Companies (F.)
Mnuchin Says 100-Year Treasury Bond Possible (R.)
US Justice Department To Release Name Of Shadowy Figure In 9/11 Case (R.)
Trump’s Taliban Talks Led by Neocon Operation Cyclone Agent (MPN)
Palace Revolt at the ECB, Legitimacy of Policy out the Window (WS)
The New ECB QE Is A Mistake. Here Is What It Should Have Done (Lacalle)

 

 

A Scotsman taking down the Queen.

The Dogs in the Street Know (Craig Murray)

There are some very obvious facts in British politics which nobody seems to be saying. Joanna Cherry stated in her successful court case that “the dogs in the street know” that the real reason that Boris Johnson had prorogued parliament was to prevent parliament from having an effective say on the outcome of Brexit. The documents that the government was forced to produce to the Scottish Courts proved beyond any shadow of a doubt that was indeed Johnson’s motive. So why are we expected to believe that what you knew and I knew, what Joanna Cherry knew, what the very dogs in the street knew, was not known to the Queen?

Do we really believe that the Queen was “misled” and that she and her courtiers were the only people in the entire country who actually believed that Johnson just wanted the longest prorogation for 89 years to prepare a really good Queen’s speech? Are we really expected to believe that the Queen had not noticed that Brexit was at a crucial stage and the effect that prorogation would have on parliament’s say in the process? This is obviously complete and utter nonsense. The Queen has better sources of information than any of us and knew exactly what was happening. She was not “misled” by Boris Johnson, she was his ally in a common purpose. She absolutely understood both the context and the effect of the prorogation. All this utter nonsense about the Queen being “lied to” and “misled” is part of this strange myth of the ultimate goodness of authority which is a recurring theme in human societies.

Peasants died under the knout while building the Trans-Siberian railway thinking “if only the good Tsar knew.” The Queen is not a naive figure of Christ like innocence taken in by Boris Johnson, she is an ultra wealthy woman of very conservative views embedded in a social circle dominated by very rich and reactionary people. To repeat what I have repeatedly explained, it was unconstitutional for the Queen to appoint Boris Johnson in the first place when it was plain as a pikestaff that he could not command a parliamentary majority. That initial crime (and I use the word advisedly) was compounded by the decision to prorogue parliament to enable her no majority Prime Minister to govern. In a sane world we should be getting out the pitchforks. Instead people are tut-tutting about the poor Queen being misled.

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Prior to his election to Speaker, Bercow was a longtime member of the Conservative Party.

Speaker Bercow Warns Boris Johnson Against Disobeying Brexit Law (BBC)

John Bercow has vowed “creativity” in Parliament if Boris Johnson ignores the law designed to stop a no-deal Brexit. The Commons Speaker also said in a speech that the only possible Brexit was one backed by MPs. A new law, passed before the suspension of Parliament, forces the PM to seek a delay until 31 January 2020, unless a deal or no-deal exit is approved by MPs by 19 October. The PM has said he would rather be “dead in a ditch” than ask for a delay. Delivering a lecture in London, Mr Bercow said: “Not obeying the law must surely be a non-starter. Period.” He said it would be a “terrible example to set to the rest of society”.


“The only form of Brexit which we will have, whenever that might be, will be a Brexit that the House of Commons has explicitly endorsed,” he said. “Surely, in 2019, in modern Britain, in a parliamentary democracy, we – parliamentarians, legislators – cannot in all conscience be conducting a debate as to whether adherence to the law is or isn’t required.” He called it “astonishing” that “anyone has even entertained the notion”. If the government comes close to disobeying the Act, the MP said that Parliament “would want to cut off such a possibility and do so forcefully”. “If that demands additional procedural creativity in order to come to pass, it is a racing certainty that this will happen, and that neither the limitations of the existing rule book nor the ticking of the clock will stop it doing so,” he added.

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Hmm. Should McCabe run free?

Former FBI Deputy Director Andrew McCabe Must Face Criminal Charges (CNBC)

Former FBI deputy director Andrew McCabe has failed in his efforts to convince the Justice Department not to file potential criminal charges against him for allegedly lying to federal agents, NBC News reported Thursday. Lawyers for McCabe, who has not been charged in the case, reportedly met last month with a top Justice official the U.S. Attorney for the District of Columbia and in what were believed to be talks seeking to dissuade then from filing criminal charges. The Washington Post reported last week that federal prosecutors for months have been using a grand jury to investigate McCabe, a critic of President Donald Trump.

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They have to ASK?

US House Panel Wants Boeing To Allow Employee Interviews On 737 MAX (R.)

Congress on Thursday asked Boeing Co’s chief executive to make several employees available for interviews as part of a congressional probe into the design, development and certification of 737 MAX aircraft involved in two crashes that killed 346 people. House of Representatives Transportation Committee Chairman Peter DeFazio and Representative Rick Larsen, who chairs the aviation subcommittee, said in a statement that while Boeing has provided substantial documents and shared senior management’s perspective, “it’s important to the committee’s investigation to hear from relevant Boeing employees.”

The committee plans another Boeing hearing in the coming weeks and previously asked whistleblowers to come forward with any information about the plane’s development. Boeing has provided more than 300,000 pages of documents, a person briefed on the matter said, speaking on condition of anonymity. Boeing said in a statement it was “deeply disappointed the committee chose to release private correspondence given our extensive cooperation to date. We will continue to be transparent and responsive to the committee.”

[..] CEO Dennis Muilenburg said at an investor conference on Wednesday that the company is still targeting “early fourth quarter for getting the airplane back up in the air” but added that “ultimately return-to-service timing will be determined by the regulator.” The FAA has repeatedly said it will not certify the plane to fly again until it is safe to do so. The European Aviation and Space Agency said on Tuesday it “intends to conduct its own test flights separate from, but in full coordination with, the FAA. The test flights are not scheduled yet, the date will depend on the development schedule of Boeing.”

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If they’re pressuring Israel, they much be pressuring others too.

US Pressures Israel To Drop China ‘Belt And Road’ Investments (ZH)

As China executes on its “Belt and Road” global trade scheme, more than 130 countries who have either committed to or expressed interest in the $600 billion initiative have been hard at work expanding their infrastructure to accommodate Beijing’s ambitious plan. And while President Trump has been pounding the table in an ongoing US-China trade war, progress made on Belt and Road threatens to reduce US leverage over Beijing – putting US allies such as Israel, which extended a 25-year offer for the operation of the Haifa terminal to state-controlled Shanghai International Port Group – in a tricky position, according to Bloomberg’s Ivan Levingston.

“With national elections approaching on Sept. 17, Prime Minister Benjamin Netanyahu can ill afford to alienate the Trump administration on its signature international issue. Trump has endeared himself to Netanyahu by transferring the U.S. Embassy from Tel Aviv to Jerusalem and recognizing Israeli sovereignty in the disputed Golan Heights. Netanyahu reciprocated by naming a new Golan settlement after Trump and praising the American leader for, among other things, quitting the Iranian nuclear accord. “Over the years, Israel has been blessed to have many friends who sat in the Oval Office, but Israel has never had a better friend than you,” Netanyahu told the president during a March trip to the White House. An October Pew study found that 69% of Israelis had confidence in Trump’s performance as president, and many of Netanyahu’s campaign ads prominently feature the U.S. leader.” -Bloomberg

Of note, China is currently Israel’s second-largest trading partner with around $11.5 billion in annual transactions in 2018, according to the report. Meanwhile, the United States has pressed Israel to create a buffer with China in the interest of national security – which would look something like the Committee on Foreign Investment in the US (the same one that rubber-stamped Russia’s purchase of 20% of America’s Uranium). “Israel and Israeli companies are quickly coming to the realization that it’s going to be difficult to sustain business as usual in work with China while keeping the United States as the primary partner,” said Daniel Shapiro, Barack Obama’s US ambassador to Israel.

Read more …

How is Huawei linked to Belt & Road?

Huawei CEO Offers To License 5G Technology To American Companies (F.)

Zhengfei Ren, the CEO and founder of Huawei offered an olive branch to the Trump administration: License the Chinese telecommunications giant’s 5G technology to American companies, with the caveat that the U.S. government ““the U.S. side has to accept us at some level for that to happen.” Currently, the use of Huawei equipment is banned from U.S. networks over concerns that it could be used by the Chinese government as a method to spy or disrupt telecom systems. The offer [..] would essentially allow the U.S. to finally get in the race for 5G supremacy which is now dominated by Chinese firms Huawei and ZTE, Ericsson of Sweden and Nokia from Finland.


“Huawei is open to sharing our 5G technologies and techniques with U.S. companies, so that they can build up their own 5G industry. That would create a balanced situation between China, the U.S. and Europe,” told Ren to the newspaper. [..] Ren added that the U.S. companies would be allowed to modify as they see fit the software code used to run any of Huawei’s 5G equipment or even change it and use their own. [..] Ren added that the American licensees will be able to sell their 5G equipment based on Huawei’s intellectual property anywhere in the world, except in China.

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“We are going to start with 50 years, and if the answer is, 50-years is successful, we’ll consider 100-year bonds..”

Mnuchin Says 100-Year Treasury Bond Possible (R.)

U.S. Treasury Secretary Steven Mnuchin on Thursday said the United States will issue 50-year bonds if there is “proper demand,” a moved aimed at “derisking” the government’s $22 trillion of debt and locking in low interest rates. “We are going to start with 50 years, and if the answer is, 50-years is successful, we’ll consider 100-year bonds,” Mnuchin said in an interview with New York Times’ DealBook and streamed online live, adding that he began looking into the possibility of ultra-long U.S. bonds two years ago. The longest-dated U.S. Treasury currently is 30 years.


U.S. President Donald Trump has proposed a different fix for the rising cost of the record U.S. debt, calling on Wednesday on the “boneheads” at the Federal Reserve to reduce interest rates to below zero so as to reduce interest-rate payments. The Fed is widely expected to cut interest rates by a modest quarter of a percentage point next week when U.S. rate-setters meet. Fed Chair Jerome Powell and other policymakers see U.S. economic conditions as still generally favorable despite a global slowdown and a still-unresolved U.S.-China trade war, and they have consistently pushed back against the notion of negative rates or of setting rates to cater to political pressure.

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Is something moving?

US Justice Department To Release Name Of Shadowy Figure In 9/11 Case (R.)

The U.S. Justice Department on Thursday said it would release the name of an individual sought by people who are suing the government of Saudi Arabia for alleged involvement in the Sept. 11, 2001, hijacking attacks. U.S. prosecutors in New York said in a court filing that Attorney General William Barr had decided not to invoke state secrets and will share the person’s name with attorneys involved in the case. The decision could help victims of the Sept. 11 attacks and their family members, who charge in a long-running lawsuit that the Saudi government supported the hijackers who crashed jet liners into the World Trade Center, the Pentagon and a Pennsylvania field, killing nearly 3,000 people.


The Saudi government has repeatedly denied involvement in the attacks. The Saudi embassy in Washington did not immediately respond to requests for comment on Thursday. The case, filed in 2003, received a boost in 2016 when Congress passed a law making it easier to sue foreign governments for alleged involvement in terrorism. The plaintiffs have been trying to obtain redacted material from a 2012 FBI report which indicated the agency was investigating two Saudi officials, Omar al-Bayoumi and Fahad al-Thumairy, and said there was evidence that a third, unnamed party had ordered them to help the hijackers. Attorneys will now get to learn the name of that person, though their identity will remain under seal.

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Scary people.

Trump’s Taliban Talks Led by Neocon Operation Cyclone Agent (MPN)

John Bolton wasn’t the only veteran of the conflict in Afghanistan now charged with resolving it. Nor was he the only PNAC veteran in the Trump administration. U.S. Special Representative for Afghanistan Reconciliation Zalmay Khalilzad, the top American official in the negotiations, was a PNAC charter member and has been quietly overseeing the destruction of Afghanistan for most of his political career — longer than the Taliban has existed as an organization. Khalilzad worked closely with late National Security Advisor Zbigniew Brzezinski, who took a leading role in Operation Cyclone under President Carter. The secret CIA program pumped the Afghan Mujahideen up with cash, weapons, training, and jihadist school books.

The Brooklyn-based Al-Kifah Afghan Refugee Center — a front for Maktab al-Khidamat, an organization co-founded by Osama bin Laden — would become key to this endeavor. Brzezinski’s aim, as he stated, was to give the Soviets their own Vietnam quagmire. Back then, his message to the Mujahideen fighters that would become al-Qaeda and the Taliban was: “Your cause is right and God is on your side.” Even after the devastating attacks of September 11, Brzezinski defended the decision to support the Mujahideen in the name of defeating the Soviet Union.

The United States’ support for the Mujahideen in Afghanistan, and later Bosnia, was intended to bleed the Soviet Union. It is no surprise that the same leeches — the Taliban and al-Qaeda — that were trained by the United States, would turn on their masters. In the case of the Taliban, clinging on to the U.S. for nearly two decades, slowly sucking away all the while. In the case of al-Qaeda, the attacks on the World Trade Center dealt massive blows. The end-game tactics mirror the CIA’s philosophy in training the Mujahideen against the USSR. U.S officials like Khalilzad would spend decades in luxurious buildings in and around Washington while the people of Afghanistan would continue to suffer nearly another two decades of conflict because of their policies.

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Wolf Richter sees the ECB falling to bits. Wonder what Lagarde is doing these days.

Palace Revolt at the ECB, Legitimacy of Policy out the Window (WS)

ECB President Mario Draghi, who is on his way out, will, as we’re learning more and more, do anything to push his agenda and make it stick at the ECB long after he leaves, but whatever his agenda may be, it’s clearly unrelated to the European economy which has been buckling under the consequences of his agenda: the destructive weight of negative interest rates and QE. And in the process, he is destroying the legitimacy of the ECB’s policy. The latest incident was on Thursday. During the press conference following the ECB’s policy meeting, he lied to reporters, claiming that the “consensus was so broad there was no need to take a vote,” when in fact he had a revolt on his hand during the meeting by the presidents of the national central banks that represented half of the economy of the Eurozone, and by members of the Executive Board.

Among the key policy changes the ECB announced on Thursday was the restart of QE to the tune of €20 billion a month and a tiny 10-basis point cut in its deposit rate, from the old negative -0.4% to the new negative -0.5%. The announcement also included a provision to help banks – which have been getting re-crushed by these idiotic negative interest rates – to survive those negative interest rates: the ECB would exempt part of the banks’ deposits at the ECB from negative rates in a two-tier system. It was the QE portion of the decision that had triggered the unprecedented revolt during the meeting. “Officials with knowledge of the matter” told Bloomberg that during the contentious meeting, the members of the Governing Council and of the Executive Board who vigorously opposed the restart of QE included but was not limited to:

• Jens Weidmann, President of the Bundesbank • Francois Villeroy de Galhau, Governor of the Bank of France • Klaas Knot, President of the Dutch central bank • Ewald Nowotny, Governor of the Austrian central bank • Ardo Hansson, Governor of the Bank of Estonia • Sabine Lautenschlaeger, Member of the Executive Board • Benoit Coeure, Member of the Executive Board. The countries of the five heads of the national central banks, from Weidmann to Hansson, account for about half of the economy of the Eurozone. They opposed the restart of QE, but there was no vote – which is common in ECB proceedings when there is a consensus. But there was no consensus. And Draghi simply imposed his agenda.

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Mistake perhaps. But hardly an honest one, if you read Wolf Richter’s piece above. The ECB IS the mistake.

The New ECB QE Is A Mistake. Here Is What It Should Have Done (Lacalle)

The ECB is creating a dangerous bubble and should not have cut rates by 10bps nor added a new purchase program of €20 billion per month. 1) Eurozone states are already financing themselves at negative rates. There is no need for lower rates and this disguises real risk. This has saved governments more than 1 trillion euro in interest expenses. 2) The ECB has not abandoned its stimulus. It repurchases all maturities, launched a liquidity injection (TLTRO) in March 2019 and balance sheet stands at almost 40% of eurozone GDP. 3) Excess liquidity is 1.7 trillion euro. More liquidity does not lead agents to spend/invest more. There is no higher solvent credit demand because monetary policy perpetuates overcapacity and zombifies the economy. Share of zombie companies has soared c30% since 2013 (BIS).

4) Interest rates are already negative. This has caused a 23 billion euro loss for banks (according to Scope Ratings) and a worrying rise in junk debt demand. 5) There is no evidence of a need for more credit growth. Rather the opposite. The ECB believes the eurozone problem is one of excess saving and lack of demand when it is of excess debt and oversupply. 6) Negative rates zombify the economy and are a massive transfer of wealth from savers and productive sectors to the indebted and inefficient. 7) The ECB already accumulates a disproportionate amount of sovereign debt as well as corporate bonds of issuers that never had a problem financing themselves at low rates. This disguises risk and creates an enormous bubble.

8) The problem of the eurozone is not one of lack of stimuli, but an excess of them. Governments burden the productive private sector with higher taxes and unnecessary regulations, so economic surprise falls despite massive stimulus. 9) When this fails or -even worse- explodes, central planners will likely blame “markets” or “lack of stimulus” to repeat. 10) Saying that negative rates are “demanded” by investors is a sad excuse. Financial repression leads economic agents to take more risk for lower yields and central banks go from lenders of last resort to enablers of financial bubbles.

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Sep 072019
 
 September 7, 2019  Posted by at 9:47 am Finance Tagged with: , , , , , , , , , , , ,  13 Responses »


Pablo Picasso Portrait of Dora Maar 1942

 

The Financialization of the US Economy (WS)
Fed Chair Powell Repeats Vow To Act ‘As Appropriate’ (R.)
Tariffs Are No Longer China’s Biggest Problem In The Trade War (CNBC)
Boris Johnson Urged To Become A ‘Brexit Martyr’ (DM)
A Trump Brexit Threatens (Wight)
A Crackup Is Inevitable (Kunstler)
CIA, Mossad, “the Epstein Network” and an Orwellian Nightmare (Whitney Webb)
How MIT Concealed Its Relationship with Jeffrey Epstein (Farrow)
Boeing’s Chief Technical Pilot On The 737 MAX Project Pleads The Fifth (ST)
For The First Time In My Life, I’m Frightened To Be Jewish (David Graeber)
Edward Snowden’s Guardian Angels (F24)

 

 

But services don’t make stuff.

The Financialization of the US Economy (WS)

Service-producing industries dominate the US economy, accounting for over 70% of GDP. And this sector is hopping. Revenues in the major services categories rose 5.3% in the second quarter of 2019, compared to the same quarter a year earlier, to $4.05 trillion, not seasonally adjusted, according to the Commerce Department’s Quarterly Selected Services Estimates released today. For the first two quarters of 2019, service revenues rose 5.5% to $8.0 trillion. The pace of growth so far this year is slightly lower than the hot 6.0% growth for the year 2018.


Four biggies dominate the service sector, and the US economy overall. They accounted for $2.92 trillion in revenues in Q1, or about 72% of total service revenues, with the biggest of them all, finance and insurance, accounting for 32%, up from 31% at the end of last year. It is also the fastest-growing segment, even faster than healthcare, as the US economy is getting more and more financialized. The share of each of the big four of overall service revenues: • Finance and insurance: 32% • Healthcare: 17% • Professional, scientific, and technical services: 12% • “Information” services, such as telecommunications, software, and data processing: 11%.

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Only one act is appropriate: go home. Did you know Jay Powell is worth some $100 million? Do you think he’s concerned about Americans living paycheck to paycheck?

Fed Chair Powell Repeats Vow To Act ‘As Appropriate’ (R.)

The U.S. Federal Reserve will continue to act “as appropriate” to sustain the economic expansion in the world’s biggest economy, Fed Chair Jerome Powell said Friday in Zurich, sticking to a phrase that financial markets have read as signaling further interest-rate reductions ahead. “Our obligation is to use our tools to support the economy, and that’s what we’ll continue to do,” Powell said at the University of Zurich. Still, he said, “We are clearly at a time where there is a range of views” among Fed policymakers meeting Sept. 17-18 to decide on rates.


Powell’s careful wording reflects a split within the U.S. central bank about how best to respond to an economy where the job market and consumer spending are strong but rising trade tensions between Beijing and Washington, Britain’s possibly messy exit from the European Union, and a broad global slowdown pose risks. Boston Fed President Eric Rosengren for instance has made the case for leaving rates where they are until those risks are more tangible in the economic data. Others including St. Louis Fed President James Bullard have called for a half-a-percentage point interest-rate cut to get ahead of the trade war risks and bring the Fed’s policy rate more in line with market expectations. Meanwhile, financial markets are betting Fed policymakers will agree to split the difference and follow their quarter-point rate cut in July with another one later this month.

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Decoupling.

Tariffs Are No Longer China’s Biggest Problem In The Trade War (CNBC)

It’s not the new round of tariffs that went into effect; we’ve been playing the tit-for-tat tariff war for more than a year. It’s not the economic reports; they’ve been a little too mixed lately to force any dramatic moves. It’s not even the decision by Hong Kong administrator Carrie Lam to fully withdraw the controversial mainland extradition bill; it’s still not clear that the Hong Kong unrest would be affected in any way by a trade deal. Given the timing of the change in tone, it seems more likely that what’s making the difference is a realization on both sides that there’s another way this trade war could end – and that possible ending is one the U.S. is very unlikely to lose.


That alternate ending is summed up in one word: decoupling. The decoupling push is quite different than any U.S. efforts to get China to open up more of its economy to American companies. Instead, it focuses on reducing America’s extremely heavy reliance on China for so much of its manufacturing needs. Even if China’s economy weren’t so closed off to so many American goods and services, a strong argument has long been made that the U.S. needs to diversify its sources for imports. While finding those new sources wouldn’t necessarily do anything to dent America’s trade imbalances, it would reduce the risks of a major disruption to the U.S. economy based on disputes or other problems connected to a single foreign country.

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As I wrote yesterday, he has little to lose by resigning.

Boris Johnson Urged To Become A ‘Brexit Martyr’ (DM)

Boris Johnson wrote to all Tory members last night to indicate that he would rather defy the law than beg Brussels for a delay in bringing Britain out of the EU. The Prime Minister said he was only bound ‘in theory’ by a law which is expected to receive Royal Assent on Monday, taking a No Deal Brexit off the table. In his letter, he reiterated his determination to stand firm against Remainers, saying: ‘They just passed a law that would force me to beg Brussels for an extension to the Brexit deadline. This is something I will never do.’ Earlier on Friday he told reporters he would not entertain seeking another deadline extension from Brussels, as the incoming law compels him to do if no agreement is in place by October 19.

He was urged last night by Tory grandee Iain Duncan Smith to hold his nerve, saying he would be ‘martyred’ if he chose to break the law and risk a possible prison sentence for contempt of Parliament. Mr Duncan Smith told The Telegraph: ‘This is about Parliament versus the people. Boris Johnson is on the side of the people, who voted to leave the EU. ‘The people are sovereign because they elect Parliament. But Parliament wants to stop the will of the people.’ If Mr Johnson fails to carry out the will of Parliament, he risks being taken to court and, if a judge ordered him to obey Parliament, he could be held in contempt and even jailed for refusing.


Mr Johnson’s latest plans for a snap election appeared to have been scuppered yet again last night by a ’stitch-up’ between Jeremy Corbyn and Remain parties. Labour, the Lib Dems and Scots and Welsh nationalists agreed to block the public going to the polls before October 31. It leaves the Prime Minister in limbo, forced to choose between resigning or defying a law passed by MPs ruling out a No Deal Brexit.

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“This desire for godlike powers of total creation is precisely why free market ideologues are so drawn to crises and disasters.”

A Trump Brexit Threatens (Wight)

Trump’s otherworldly vice president, Mike Pence, has just said more in one short sentence to unravel the complexities of the Brexit crisis that continues to bedevil the UK, than the ocean of column inches that have been devoted to the subject since the referendum was held in 2016. Speaking at a black tie event in London on Thursday night, attended by an array of business executives, Pence proclaimed, “The minute the UK is out, America is in.” Pence, a man who stands as living proof that human evolution is not wedded to an ever upwards path, delivered these words with the bombast of a Roman proconsul addressing the notables of a soon-to-be client state.

Thus let there be no doubt that the hard no-deal Brexit advocated by the UK’s newly installed Prime Minister Boris Johnson and his supporters is to all intents a Trump Brexit – one that will see the UK economy opened up to the tender mercies of U.S. corporations on terms set not by London but Washington. In other words, we’re talking disaster capitalism on steroids, bringing with it the likely prospect of the decimation of what’s left of the UK’s welfare state, including that most revered totem to social solidarity, the National Health Service (NHS), which since the end of WWII, when it was established, has provided generations of British citizens with free healthcare at the point of need, funded out of general taxation, regardless of social class or personal wealth.


The NHS is therefore a socialist institution in all but name, which Johnson and his privileged right wing establishment acolytes in the hard Brexit camp would sooner see broken up and sold off to U.S. insurance companies in sacrifice to their god, the market. This is regardless of any and all assurances given to the contrary. In her classic work, Shock Doctrine, Naomi Klein writes: “Believers in the shock doctrine [of disaster capitalism] are convinced that only a great rupture – a flood, a war, a terrorist attack – can generate the kind of vast, clean canvases they crave,” while earlier in the same passage, warning that “This desire for godlike powers of total creation is precisely why free market ideologues are so drawn to crises and disasters.”

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National sovereignty.

A Crackup Is Inevitable (Kunstler)

What’s at stake behind all the pushing-and-shoving is the question of national sovereignty. Does it matter anymore? I suspect it will matter increasingly for everyone in many nations, and at a smaller and smaller scale of political divisions so that, for instance, Great Britain itself will be faced with surrendering its dominion over Scotland and Northern Ireland. This is churning in the zeitgeist now, actually has been for some time since the Soviet Union and Yugoslavia cracked up. Even the United States finds itself increasingly disunited and it’s not inconceivable that before the century ends some regions may go their own way. Texans have been talking it up for years, and California is already acting like she’s started divorce proceedings.

China, meanwhile, is whipping its quasi-vassal Hong Kong like a dog because Xi Jinping is not in a position to bust Donald Trump upside the head and Xi’s got to take it out on somebody. Everything was looking so rosy for China as it burst out of its medieval cocoon into industrial adulthood, and now Mr. Trump is ruining the global arrangements that turned the sclerotic old outfit into a global super-dragon. They’ve had a blast driving down the capitalist road — even if they’re actually ruled by communists — but a storm of bad debt is coming up on them from behind, and if it catches up, the joyride is over and some kind of dreadful crackup happens.


All the abiding normality of the past seventy years is slipping away into flux. Modernity is finally yielding – to what? Nobody knows. And nowhere is this more obvious than in the realm of money and economy. Beyond all the other quarrels of modern times — democracy versus communism, Islam versus the West, the wealthy north versus the poor south — one thing remained pretty steady: the flow of oil into the engines of economy. Turned out, the world didn’t have to run out of oil for that normality to fray badly; the oil just had to become marginally unaffordable, and voila! It’s hard for people to grok, especially here in the USA with oil production so far above the old 1970 prior peak that the proposition seems absurd.

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Whitney’s latest. Obvious must read.

CIA, Mossad, “the Epstein Network” and an Orwellian Nightmare (Whitney Webb)

Prior to the public scrutiny of Barak’s relationship to Jeffrey Epstein, following the latter’s arrest this past July and subsequent death, Barak had come under fire for his ties to disgraced film mogul Harvey Weinstein. Indeed, it was Ehud Barak who put Weinstein in contact with the Israeli private intelligence outfit Black Cube, which employs former Mossad agents and Israeli military intelligence operatives, as Weinstein sought to intimidate the women who had accused him of sexual assault and sexual harassment. Former Mossad director Meir Dagan led Black Cube’s board until his death in 2016 and Carbyne co-founder Lital Leshem is Black Cube’s former director of marketing.

After Barak put him in contact with Black Cube’s leadership, Weinstein, according to The New Yorker, used the private spy firm to “‘target,’ or collect information on, dozens of individuals, and compile psychological profiles that sometimes focused on their personal or sexual histories.” In addition, The New Yorker noted that “Weinstein monitored the progress of the investigations personally” and “also enlisted former employees from his film enterprises to join in the effort, collecting names and placing calls that, according to some sources who received them, felt intimidating.”


Yet, more recently, it has been Barak’s close relationship to Epstein that has raised eyebrows and opened him up to political attacks from his rivals. Epstein and Barak were first introduced by former Israeli Prime Minister Shimon Peres in 2002, a time when Epstein’s pedophile blackmail and sex trafficking operation was in full swing.

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Pecunia non olet.

How MIT Concealed Its Relationship with Jeffrey Epstein (Farrow)

The M.I.T. Media Lab, which has been embroiled in a scandal over accepting donations from the financier and convicted sex offender Jeffrey Epstein, had a deeper fund-raising relationship with Epstein than it has previously acknowledged, and it attempted to conceal the extent of its contacts with him. Dozens of pages of e-mails and other documents obtained by The New Yorker reveal that, although Epstein was listed as “disqualified” in M.I.T.’s official donor database, the Media Lab continued to accept gifts from him, consulted him about the use of the funds, and, by marking his contributions as anonymous, avoided disclosing their full extent, both publicly and within the university.


Perhaps most notably, Epstein appeared to serve as an intermediary between the lab and other wealthy donors, soliciting millions of dollars in donations from individuals and organizations, including the technologist and philanthropist Bill Gates and the investor Leon Black. According to the records obtained by The New Yorker and accounts from current and former faculty and staff of the media lab, Epstein was credited with securing at least $7.5 million in donations for the lab, including two million dollars from Gates and $5.5 million from Black, gifts the e-mails describe as “directed” by Epstein or made at his behest. The effort to conceal the lab’s contact with Epstein was so widely known that some staff in the office of the lab’s director, Joi Ito, referred to Epstein as Voldemort or “he who must not be named.”

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By refusing to send documents.

Boeing’s Chief Technical Pilot On The 737 MAX Project Pleads The Fifth (ST)

A former Boeing official who played a key role in the development of the 737 MAX has refused to provide documents sought by federal prosecutors investigating two fatal crashes of the jetliner, citing his Fifth Amendment right against self-incrimination, according to a person familiar with the matter. Mark Forkner, Boeing’s chief technical pilot on the MAX project, invoked the privilege in response to a grand jury subpoena issued by U.S. Justice Department prosecutors looking into the design and certification of the plane, the person said.

Invoking the Fifth to avoid testifying, while a legal right, is sometimes interpreted as an admission of guilt. Its use to resist a subpoena for documents is less common and may only imply a dance between prosecutors and defense attorneys, legal experts say. Forkner, now a first officer for Southwest Airlines, referred questions to his attorney when reached by phone. His attorney, David Gerger, of Houston, did not respond to inquiries.


Forkner, who worked at Boeing from 2011 to 2018, according to his LinkedIn profile, was frequently anxious about the deadlines and pressures faced in the MAX program, going to some of his peers in the piloting world for help, a person who worked on the project previously told The Seattle Times, speaking on condition of anonymity. The MCAS system, designed to move a powerful control surface at the tail to push the airplane’s nose down in certain rare situations, played a critical role in the crashes when the planes nose-dived out of the sky. During the certification process, Forkner suggested to the Federal Aviation Administration (FAA) that MCAS not be included in the pilot manual, according to previous Seattle Times reporting.

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The anti-Corbyn campaign fallout.

For The First Time In My Life, I’m Frightened To Be Jewish (David Graeber)

I am 58 years old, and for the first time in my life, I am frightened to be Jewish. We live in a time when racism is being normalized, when Nazis parade in the streets in Europe and America; Jew baiters like Hungary’s Orban are treated as respectable players on the international scene, “white nationalist” propagandist Steve Bannon can openly coordinate scare-mongering tactics with Boris Johnson in London at the same time as in Pittsburg, murderers deluded by white nationalist propaganda are literally mowing Jews down with automatic weapons. How is it, then, that our political class has come to a consensus that the greatest threat to Britain’s Jewish community is a lifelong anti-racist accused of not being assiduous enough in disciplining party members who make offensive comments on the internet?


For almost all my Jewish friends, this is what is currently creating the greatest and most immediate sense of trepidation, even more than the actual Nazis: the apparently endless campaign by politicians like Margaret Hodge, Wes Streeting, and Tom Watson to weaponize antisemitism accusations against the current leadership of the Labour party. It is a campaign – which however it started, has been sustained primarily by people who are not themselves Jewish – so cynical and irresponsible that I genuinely believe it to be a form of antisemitism in itself. And it is a clear and present danger to Jewish people. To any of these politicians who may be reading this, I am begging you: if you really do care about Jews, please, stop this.

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Justin better act.

Edward Snowden’s Guardian Angels (F24)

After he revealed the National Security Agency’s illegal mass surveillance programmes in 2013, Edward Snowden received help from some unlikely accomplices. Four refugees and their lawyer allowed the whistleblower to escape and stay under the radar, at a time when he was the world’s most wanted man. For 13 days, they sheltered him in their tiny apartments located in the poorest area of Hong Kong, home to the marginalised community of asylum seekers. The mastermind behind the idea of hiding the American fugitive in plain sight was Robert Tibbo, a Canadian human rights lawyer, well known for defending asylum seekers in the region.

Snowden told FRANCE 24 he believes he owes his life to these unexpected allies, who could have turned him in at any time: “They could have written an email to the CIA and they could have gotten a big cheque or they could have finally gotten asylum in exchange. But they would have had to do it by selling someone into a grave. And for that, I’ll never be able to repay them.”


But since their identity was revealed, especially with the release of the Oliver Stone film “Snowden” in 2016, these refugees are being persecuted by Hong Kong authorities. Arrested on several occasions, they have been questioned about their ties with Snowden. The little welfare they received from the government has been cut. Today, they all live in constant fear in Hong Kong. If deported to their home country of Sri Lanka, they could face imprisonment, torture and even death. All of them have applied for asylum in Canada.

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Sep 032019
 
 September 3, 2019  Posted by at 8:49 am Finance Tagged with: , , , , , , , , ,  11 Responses »


Pablo Picasso Head of a woman 1939

 

Resurrecting the American Economy With Stalinism 2.0 (Dmitry Orlov)
Use Old Chinese Debt To Default On Beijing’s $1 Trillion Treasuries (RT)
Boris Johnson Faces Showdown In Parliament (BBC)
The Realities Of A No-Deal Brexit (Ivan Rogers)
Ahead of Brexit, UK Factories Go Quiet (R.)
Hong Kong Leader Says She Would ‘Quit’ If She Could (R.)
Carrie Lam: Hong Kong Leader ‘Never Tendered Resignation To Beijing’ (BBC)
The Quickening (Kunstler)
Jeffrey Epstein’s Model-Scouting Pal Has ‘Disappeared Without A Trace’ (NYP)
New Delays Could Keep Boeing 737 MAX Grounded Into Holiday Travel Season (MW)
All Of Us Are In Danger: John Pilger Has Chilling Warning From Assange (RT)

 

 

Lovely from Dmitry. Do read the whole thing. What the US must do to save its economy is imitate China.

Resurrecting the American Economy With Stalinism 2.0 (Dmitry Orlov)

Donald Trump has recently ordered US corporations to move production out of China and into the US. Easier said than done!—or, rather, undone. Moving production to China (and, in case of IT, to India) allowed US corporations to benefit from the large wage differential and an easier regulatory environment in order to be more profitable. They spent these excess profits by buying back their own stock, paying generous dividends to their shareholders and using their artificially inflated stock prices to justify exorbitant executive salaries and bonuses.

Along the way, they impoverished American workers by depriving them of gainful deployment, eroded the skill base of the American population and, perhaps most importantly, destroyed demand for their products because more and more Americans could no longer afford them. As these trends played out, making China prosperous and the US increasingly distressed and impoverished, with close to 100 million working-age people permanently jobless, US corporations could no longer profit from their offshored production to the same extent, and so they took advantage of low interest rates to borrow huge sums of money and use it to continue buying back their own shares, paying dividends and continuing with the exorbitant executive compensation.


By now, many of the major US corporations are financial zombies, waiting for an uptick in interest rates to drive them into bankruptcy. And it is these zombies that are being tasked with bringing production back to the US. Good luck with that! Which is to say, it is highly unlikely that such an effort could possibly succeed. But even if it could succeed, would it solve the problem—which is that the US is gradually degenerating into a bankrupt third world country? Perhaps not, because, you see, the entire theory of “making America great again” is based on a fallacy—which is that China became the world’s largest economy (by purchasing power) and the world’s factory simply by virtue of the fact that American corporations offshored production to it.

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The webs we weave…

Use Old Chinese Debt To Default On Beijing’s $1 Trillion Treasuries (RT)

[..] the trade war adversaries are already considering options beyond tariffs. Beijing, which enjoys a trade surplus with the US, has hinted it could use rare earth metals as a leverage. There is also China’s “nuclear” option of dumping US Treasuries. Meanwhile, Washington has been reminded of China’s century-old bonds incurred before the nation adopted communism, which, adjusted for inflation, interest and other fees, amount to around $1 trillion, perfectly covering Beijing’s holdings of US Treasury Bills. “The US will simply default on $1 trillion of UST bonds held by China and claim, based on these old bonds, that they are justified in doing so,” Max Keiser, the host of RT’s Keiser Report, said.


While it’s really doubtful that China would ever pay out, the US’ attempt to claim the money would only trigger serious economic problems and make the already turbulent situation worse, investment guru Jim Rogers told RT. “If America gets a ruling that they [China] must pay then what America would do is freeze Chinese assets in America… take those assets or seize those assets. And then you have a very serious trade war going on,” Rogers said, adding that China would certainly retaliate to such a move. The individual holders of the antique bonds can do little to get any money from China, which has never recognized the debt. Firstly, they would have to have their claim recognized, win the case, and then find some way to force China to cash out, according to Duke University professor Mitu Gulati. However, it would be a completely different story if the Trump administration steps in.

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How does he feel about Bitcoin?

ECB Official Mersch Calls Facebook’s Libra ‘Treacherous’ (MW)

A high-ranking European Central Bank official on Monday outlined problems with the planned cryptocurrency Libra, the latest in a series of warnings from government officials. “I sincerely hope that the people of Europe will not be tempted to leave behind the safety and soundness of established payment solutions and channels in favor of the beguiling but treacherous promises of Facebook’s siren call,” said Yves Mersch, a member of the ECB’s executive board.

In a speech at a Frankfurt legal conference, he wryly noted that Libra was coming from “the very same people who had to explain themselves in front of legislators in the United States and the European Union on the threats to our democracies resulting from their handling of personal data on their social media platform,” a reference to Facebook. One concern Mersch raised is that the Libra coins will be issued by a cartel of players in the fields of payments, technology, e-commerce and telecommunications. Called the Libra Association, it will control the blockchain and collect the seigniorage income. Libra Association members include Mastercard, PayPal, eBay, and Uber.


“With such a setup, it is difficult to discern the foundational promises of decentralization and disintermediation normally associated with cryptocurrencies and other digital currencies. On the contrary, similarly to public money, Libra will actually be highly centralized, with Facebook and its partners acting as quasi-sovereign issuers of currency,” he said. Public money also is centralized, but unlike Libra, has a “sovereign entity and a central issuance authority.” The corporate entities, by contrast, are accountable to their shareholders and will “get privileged access to private data that they can abusively monetize.”

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More than one. Chaos galore.

Boris Johnson Faces Showdown In Parliament (BBC)

Boris Johnson faces a showdown in Parliament later after No 10 officials warned he would call for a snap general election on 14 October if MPs succeed in seizing control of Commons business. Rebel Tories and Labour MPs are planning a bill to stop the UK leaving the EU on 31 October without a deal. Mr Johnson said he did not want an election, but progress with the EU would be “impossible” if the MPs win. Jeremy Corbyn said the Labour Party was ready for a general election. But shadow Northern Ireland secretary Tony Lloyd later said Labour would vote against any government plans to hold a general election before the UK is due to leave the EU on 31 October.


He said Labour “will not have Boris Johnson dictate the terms of an election that crashes this country out with no deal”. Under the Fixed-term Parliaments Act, Mr Johnson would require the backing of two-thirds of the UK’s 650 MPs to trigger a poll in the autumn. A number of MPs have come together across party political lines in a fresh bid to stop a no-deal Brexit, after Mr Johnson vowed to leave the EU with or without a deal on 31 October. When Parliament returns on Tuesday after recess, they are expected to put forward legislation under Standing Order 24 – a rule that allows urgent debates to be heard.

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Rogers was the Permanent Representative of the United Kingdom to the European Union from 4 November 2013 until 3 January 2017.

The Realities Of A No-Deal Brexit (Ivan Rogers)

No developed country has taken itself out of a trade bloc since the war because the costs of deliberately making trade substantially more difficult with your closest neighbours are obviously large. No trade deal has ever been struck between partners actively seeking to get further apart. Trade deals have always been between those aspiring to converge and to increase trade flows, not diverge and decrease them. No amount of repetition of ‘this will all be terribly easy’ ever makes it true. It is not unpatriotic or ‘declinist’ to point out that a process of ‘differential disentanglement’ – which is actually what Brexit is – will be hard, complex and lengthy. How, seriously, after more than three years can so much of our political elite still be in denial on this?

If you leave a club whose other members are prepared to integrate more deeply politically and juridically than you, because they see economic and political benefits from doing so, you cannot tell the public that any adverse consequences of leaving are all the club’s fault, for wilfully not carrying on giving you club benefits when you leave. Nor can you just wish away issues at borders, whether on land or cross-Channel, when the entire purpose of leaving the Single Market and Customs Union must be to run deliberately different regulatory regimes – chosen by your own Parliament – where you believe it suits you. Such choices by definition entail a hard border. Borders across the whole world demarcate different regulatory regimes.


Even the border between Sweden and Norway, one in the EU, the other out of it but wanting to remain much closer ‘in’ to EU institutional and legal frameworks (Single Market, Schengen) than our government, is a hard border. If alternative arrangements currently existed which obviated the need for any such border, they would already be operating right there. They are not.

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“Another contraction in the current quarter would officially herald a recession.”

Ahead of Brexit, UK Factories Go Quiet (R.)

British manufacturing contracted last month at the fastest rate in seven years, rocked by the deepening Brexit crisis and the global downturn, boding poorly for the chances of an economic rebound in the third quarter, a survey showed on Monday. The IHS Markit/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) fell to 47.4 from 48.0 in July, a full point lower than the median forecast in a Reuters poll of economists and well below the 50 dividing line for growth and contraction.


Only German manufacturing fared worse among the national PMIs produced for Europe by data company IHS Markit. “The big picture is that manufacturing is on track to contract for a second consecutive quarter, and a meaningful recovery is unlikely given the ongoing struggles of global manufacturing,” Andrew Wishart, UK economist at consultancy Capital Economics, said. Britain’s overall economy shrank in the second quarter too, a hangover from the stockpiling boom in advance of the original March Brexit deadline. Another contraction in the current quarter would officially herald a recession.

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What she said in private…

Hong Kong Leader Says She Would ‘Quit’ If She Could (R.)

Embattled Hong Kong leader Carrie Lam said she has caused “unforgivable havoc” by igniting the political crisis engulfing the city and would quit if she had a choice, according to an audio recording of remarks she made last week to a group of businesspeople. At the closed-door meeting, Lam told the group that she now has “very limited” room to resolve the crisis because the unrest has become a national security and sovereignty issue for China amid rising tensions with the United States. “If I have a choice,” she said, speaking in English, “the first thing is to quit, having made a deep apology.”

Lam’s dramatic and at times anguished remarks offer the clearest view yet into the thinking of the Chinese leadership as it navigates the unrest in Hong Kong, the biggest political crisis to grip the country since the Tiananmen Square protests of 1989. Hong Kong has been convulsed by sometimes violent protests and mass demonstrations since June, in response to a proposed law by Lam’s administration that would allow people suspected of crimes on the mainland to be extradited to face trial in Chinese courts. The law has been shelved, but Lam has been unable to end the upheaval. Protesters have expanded their demands to include complete withdrawal of the proposal, a concession her administration has so far refused. Large demonstrations wracked the city again over the weekend.


Lam suggested that Beijing had not yet reached a turning point. She said Beijing had not imposed any deadline for ending the crisis ahead of National Day celebrations scheduled for October 1. And she said China had “absolutely no plan” to deploy People’s Liberation Army troops on Hong Kong streets. World leaders have been closely watching whether China will send in the military to quell the protests, as it did a generation ago in the bloody Tiananmen crackdown in Beijing. Lam noted, however, that she had few options once an issue had been elevated “to a national level,” a reference to the leadership in Beijing, “to a sort of sovereignty and security level, let alone in the midst of this sort of unprecedented tension between the two big economies in the world.”

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… and now denies in public.

Carrie Lam: Hong Kong Leader ‘Never Tendered Resignation To Beijing’ (BBC)

Hong Kong leader Carrie Lam has denied ever offering to resign, after audio was leaked of her saying she would if she could. Yesterday a recording of a private meeting emerged where she is heard saying: “If I have a choice, the first thing is to quit.” On Tuesday she said she had “never tendered any resignation”, but did not deny the authenticity of the recording. [..] The audio, published by Reuters on Monday, was recorded at a private meeting of business leaders that Ms Lam attended last week. In it she is heard blaming herself for igniting the territory’s political crisis, saying it was unforgiveable of her to have caused such huge havoc. “If I have a choice, the first thing is to quit, having made a deep apology, is to step down,” the voice on the tape says.


[..] She also says in the recording that China does not have a deadline by which it wants to solve the crisis in Hong Kong, and that Chinese authorities would not send in troops to end the protests. At a weekly press conference, Ms Lam was asked about the leaked audio. She said it was “totally unacceptable” that her remarks made in private had been recorded and passed to the media. “I have never tendered a resignation to the Central People’s Government,” the chief executive told reporters. “I have not even contemplated to discuss a resignation with the Central People’s Government.” “The choice of not resigning is my own choice,” she said, insisting she wanted “to help Hong Kong in a very difficult situation and to serve the people of Hong Kong”.

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“..the RussiaGate ploy alerted Americans that there truly is a Deep State with its own self-winding agenda.”

The Quickening (Kunstler)

Cue the rise of the redistributionists, that is, the people who want the government to determine who gets what and where to get it. Or, shall we say, who to take it from. Elizabeth Warren is leading the pack for now — the Oklahoma once-Republican grandma turned Leon Trotsky wannabe. I’ll give her this: she’s a helluva cheerleader. And she’s energetic for an old broad, prancing around the stage in her spandex yoga pants, arms akimbo, head vibrating. I wonder, though, whether voters (those aforesaid citizens) will remember that she vowed to give free health care to border-jumpers. Or that she pretended to be a Cherokee for career advancement at snooty Harvard. A rowdy-dowdy financial smash-up will tarnish the Trump MAGA brand for sure.


But will the Golden Golem of Greatness simply stew in the oval office or try some desperate new stunts to salvage his quixotic political career? And will his shaky marriage with the Republican Party veer into divorce court, with the party turning to a steadier and more conventional figure in the coming election year? They’ll get beat anyway as economic depression mounts, but they’ll save face in defeat. That is, if Mr. Trump manages to not start World War Three in the meantime. Odious as he is to many, history will record one salutary effect of his term in office: the RussiaGate ploy alerted Americans that there truly is a Deep State with its own self-winding agenda. A few perp-walks upcoming may have a chastening effect on future Swamp critters entertaining a higher calling, as the slippery James Comey put it — meaning, using the powerful machinery of government for your own purposes.

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Can’t find any of his accomplices, can we?

Jeffrey Epstein’s Model-Scouting Pal Has ‘Disappeared Without A Trace’ (NYP)

The model agency boss accused of scouting young girls for pedophile pal Jeffrey Epstein has disappeared like a “ghost,” as investigators scour the globe searching for him, a new report said. French authorities want to quiz Jean-Luc Brunel, 72, over his ties to Epstein as part of their own probe into the late financier who had a house in Paris, according to the Daily Mirror. “He is a ghost who has disappeared without a trace,” a legal source in Paris told the paper of Brunel, who discovered some of the biggest names in modeling, including Christy Turlington and Angie Everhardt. Investigators have made inquiries throughout the US and Europe, as well as Brazil, where the Frenchman was seen looking for girls just three months before Epstein, 66, was arrested, the paper says. “There is no address for him, all his internet accounts, including social media, have been wiped out. He is uncontactable,” the source told the Mirror.

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Sounds crazy: Boeing simply doesn’t answer questions.

New Delays Could Keep Boeing 737 MAX Grounded Into Holiday Travel Season (MW)

Friction between Boeing and international air-safety authorities threatens a new delay in bringing the grounded 737 MAX fleet back into service, according to government and pilot union officials briefed on the matter. The latest complication in the long-running saga, these officials said, stems from a Boeing briefing in August that was cut short by regulators from the U.S., Europe, Brazil and elsewhere, who complained that the plane maker had failed to provide technical details and answer specific questions about modifications in the operation of MAX flight-control computers.


Boeing as a result now has to resubmit briefing documents describing proposed software changes, these people said. The changes then have to be vetted by the U.S. Federal Aviation Administration before a follow-up meeting with the same participants can be held and crucial simulator and flight tests of the final software revisions scheduled. The upshot, the people said, is likely to be several more weeks of delay that could significantly reduce the likelihood that many of the planes would be back flying passengers in North America during the Christmas holidays, as Boeing and some U.S. carriers have publicly projected. The meetings and the fallout haven’t been reported before.

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At the Roger Waters performance of Wish You Were Here last night.

All Of Us Are In Danger: John Pilger Has Chilling Warning From Assange (RT)

Journalist John Pilger has delivered a stark warning from WikiLeaks co-founder Julian Assange, who said that his persecution is intended to kill dissent. “Speak up now,” Pilger said, or face “the silence of a new kind of tyranny.” Assange is currently serving a 50 week sentence in Belmarsh Prison for skipping a bail hearing in 2012. US authorities are seeking his extradition for his role in publishing classified documents, accusing him of espionage. Speaking at a rally outside the Home Office in London on Monday, Pilger passed on a message from the WikiLeaks editor who, if extradited and convicted, could be sentenced to 175 years in prison.

It’s not just me. It’s much wider. It’s all of us. It’s all journalists, and all publishers who do their job who are in danger.


“The danger Julian Assange faces can easily spread to the present and past editors of the Guardian, the New York Times, Der Spiegel, El Pais in Spain, the Sydney Morning Herald, and many other newspapers and media outlets that published the WikiLeaks revelations about the lies and crimes of our governments,” Pilger continued. “By defending Julian Assange we defend our most sacred rights,” Pilger warned. “Speak up now or wake up one morning to the silence of a new kind of tyranny.”

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In these difficult times, the UK press asks the hard-hitting questions:

 

 

 

 

 

Aug 272019
 


Pablo Picasso Female bust (Dora Maar) 1938

 

Brexit: Shutting Down Parliament ‘Gravest Abuse Of Power In Living Memory’ (G.)
Iran’s Rouhani Says No Talks With US Until Sanctions Lifted (R.)
Brazil To Reject $20m Pledged By G7 To Fight Amazon Fires (G.)
The Geo-Politics of Looming Recession (Crooke)
Bernie Sanders Media Plan Decrying Corporate Control Of The Press (Hill)
German Economy Contracted On Weaker Exports In Q2 (R.)
Lifting Of Greek Capital Controls Signals Return To Normalcy (K.)
Johnson & Johnson Gets $572mn Slap On Wrist For Opioid Crisis In Oklahoma (RT)
How Did the 737 Max Get Approved in the First Place? (Spiegel)
Pluto Is A Planet, NASA Chief Says (Ind.)

 

 

Don’t know why they’re not in court already.

Brexit: Shutting Down Parliament ‘Gravest Abuse Of Power In Living Memory’ (G.)

Boris Johnson would be committing the “gravest abuse of power and attack on UK constitutional principle in living memory” if he shuts down parliament to help force through a no-deal Brexit, according to legal advice obtained by Labour. In a six-page document prepared for Jeremy Corbyn, the shadow attorney general, Shami Chakrabarti, laid out how any such move by the prime minister would be open to immediate legal challenge in the courts. She said it could be subject to judicial review and the courts “might well even grant interim injunctive relief in order to allow both houses of parliament to continue to sit and discharge their primary and sovereign constitutional role in this current moment of national crisis”.

The advice from Chakrabarti, a barrister, was commissioned by Labour after leaked emails showed No 10 had sought the counsel of Geoffrey Cox, the attorney general, on whether a five-week prorogation from 9 September might be possible to avoid a confidence vote and help enable a no-deal Brexit. The initial legal guidance for No 10 was that shutting parliament may be possible, unless action being taken in the courts by anti-Brexit campaigners succeeds in the meantime. Johnson was pressed repeatedly on Monday on what he would do if MPs tried to thwart his Brexit policy – at a press conference at the close of the G7 summit in Biarritz. He declined to rule out temporarily shutting down parliament.

“I think that this [is] really a matter for parliamentarians to get right ourselves,” he said. “We asked the people to vote on whether they wanted to stay in or leave the EU; they voted to leave by a big majority. [..] Parliament could be shut from 9 September until 14 October – two weeks before Johnson has promised to implement Brexit with or without a deal – under the plan being considered by No 10. The official reason would be a break before a Queen’s speech setting out Johnson’s legislative programme, but it would have the effect of stopping MPs legislating against a no-deal Brexit or ousting the prime minister.

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“Tehran has never wanted nuclear weapons.”

Iran’s Rouhani Says No Talks With US Until Sanctions Lifted (R.)

Iran will not talk to the United States until all sanctions imposed on Tehran are lifted, President Hassan Rouhani said on Tuesday, a day after President Donald Trump said he would meet his Iranian counterpart to try to end a nuclear standoff. Trump said on Monday he would meet Iran’s president under the right circumstances to end a confrontation over Tehran’s 2015 nuclear deal with six powers and that talks were underway to see how countries could open credit lines to keep Iran’s economy afloat. Rouhani said Iran was always ready to hold talks. “But first the U.S. should act by lifting all illegal, unjust and unfair sanctions imposed on Iran.”


Speaking at a G7 summit in the French resort of Biarritz, Trump ruled out lifting economic sanctions to compensate for losses suffered by Iran. European parties to the deal have struggled to calm the deepening confrontation between Iran and the United States since Trump pulled Washington out of the 2015 nuclear deal with world powers and reimposed sanctions on the Iranian economy. Iran has scaled back its commitments under the pact in retaliation to U.S. sanctions. “We will continue to scale back our commitments under the 2015 deal if our interests are not guaranteed,” said Rouhani in a speech broadcast live. “Tehran has never wanted nuclear weapons.”

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Money pledged by the west to fight Amazon fires: $20 million.
Money pledged by billionaires to rebuild Notre-Dame: $835 million.

Brazil To Reject $20m Pledged By G7 To Fight Amazon Fires (G.)

Brazil will reject the offer from G7 countries of $20m to help fight fires in the Amazon, government sources have said, with a senior official telling French president Emmanuel Macron to take care of “his home and his colonies.” “We appreciate [the offer], but maybe those resources are more relevant to reforest Europe,” Onyx Lorenzoni, chief of staff to President Jair Bolsonaro, told the G1 news website. Lorenzoni was referring to a US$20m pledge made at the G7 summit in France to fight the rainforest blaze, which environmental campaigners dismissed as “chump change” in the efforts to fight the fires that have ravaged the Amazon. “Macron cannot even avoid a foreseeable fire in a church that is a world heritage site. What does he intend to teach our country?” he continued, referring to the fire in April that devastated the Notre-Dame cathedral.


AFP later confirmed the comments. Brazilian environment minister Ricardo Salles had earlier told reporters they had welcomed the G7 funding to fight the fires that have swept across 950,000 hectares (2.3m acres) and prompted the deployment of the army. But after a meeting between Bolsonaro and his ministers, the Brazilian government changed course. “Brazil is a democratic, free nation that never had colonialist and imperialist practices, as perhaps is the objective of the Frenchman Macron,” Lorenzoni said. The announcement of the $20m assistance package was the most concrete outcome of the three-day summit of major industrialised democracies in Biarritz and aimed to give money to Amazonian nations such as Brazil and Bolivia, primarily for more firefighting planes.

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History lessons always useful. But beware of causation and correlation.

The Geo-Politics of Looming Recession (Crooke)

[..] the ‘pattern’ starts with Woodrow Wilson’s observation in 1916, that “Britain has the earth, and Germany wants it”. Well, actually it was also about British élite fear of rivals (i.e. Germany arising), and the fear of Britain’s élites of appearing weak. Today, it is about the American élite fearing similarly, about China, and fearing a putative Eurasian ‘empire’. The old European empires effectively ‘died’ in 1916, Tooze states: As WWI entered its third year, the balance of power was visibly tilting from Europe to America. The belligerents simply could no longer sustain the costs of offensive war. The Western allies, and especially Britain, outfitted their forces by placing larger and larger war orders with the United States.

By the end of 1916, American investors had wagered two billion dollars on an Entente victory (equivalent to $560 billion in today’s money). It was also the year in which US output overtook that of the entire British Empire. The other side to the coin was that staggering quantity of Allied purchases called forth something like a war mobilization in the United States. American factories switched from civilian to military production. And the same occurred again in 1940-41. Huge profits resulted. Oligarchies were founded; and America’s lasting interest in its outsize military-security complex was founded. Wilson was the first American statesman to perceive that the United States had grown, in Tooze’s words, into “a power unlike any other.

It had emerged, quite suddenly, as a novel kind of ‘super-state,’ exercising a veto over the financial and security concerns of the other major states of the world.” Of course, after the war – there was the debt. A lot of it. France “was deeply in debt, owing billions to the United States and billions more to Britain. France had been a lender during the conflict too, but most of its credits had been extended to Russia, which repudiated all its foreign debts after the Revolution of 1917. The French solution was to exact reparations from Germany”. “Britain was willing to relax its demands on France. But it owed the United States even more than France did. Unless it collected from France—and from Italy and all the other smaller combatants as well—it could not hope to pay its American debts.”

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Can the press in the US still be saved?

Bernie Sanders Media Plan Decrying Corporate Control Of The Press (Hill)

Presidential contender Sen. Bernie Sanders (I-Vt.) on Monday released a plan to protect independent news outlets and journalists from the effects of widespread media consolidation. Sanders, decrying the mega-mergers he says have led to a handful of large corporations acting as gatekeepers for the information most Americans receive, calls for concrete steps “to rebuild and protect a diverse and truly independent press so that real journalists can do the critical jobs that they love” in an editorial for the Columbia Journalism Review. “Today, after decades of consolidation and deregulation, just a small handful of companies control almost everything you watch, read, and download, Sanders writes.


“Given that reality, we should not want even more of the free press to be put under the control of a handful of corporations and ‘benevolent’ billionaires who can use their media empires to punish their critics and shield themselves from scrutiny.” Sanders proposes policies to better protect both local and national independent journalism. The plan includes undoing moves by the Trump administration that have made corporate media mergers easier to complete and an immediate freeze on major media mergers until their effects on the free press can be studied. “In the spirit of existing federal laws, we will start requiring major media corporations to disclose whether or not their corporate transactions and merger proposals will involve significant journalism layoffs,” Sanders writes.

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Will Germany start applying stimulus, even at the risk of rising debt?

German Economy Contracted On Weaker Exports In Q2 (R.)

Germany’s economy contracted on weaker exports in the second quarter, detailed data showed on Tuesday, highlighting the Achilles heel of Europe’s largest economy due to escalating trade disputes and waning foreign demand. The Federal Statistics Office confirmed a preliminary gross domestic product contraction of 0.1% quarter-on-quarter from April to June after a 0.4% expansion in the first three months of the year. The outlook for the German economy is uncertain as sentiment indicators point to a bumpy road ahead and most economists expect another quarter of contraction which would be a technical recession. Exports fell more strongly than imports in the second quarter which meant that net trade deducted 0.5 percentage points from overall economic expansion.


Construction investment was also a drag, falling 1.0% on the quarter. Household spending, state expenditure and private-sector investment in machinery and equipment all increased, but they were not strong enough to counter the massive drag of net trade. “The details of the growth components show that the contraction was almost exclusively driven by weak exports,” Carsten Brzeski from ING said, adding that the GDP figures showed that not everything was bad. “Some relief from trade could easily lead to a rebound toward the end of the year. Fiscal stimulus could boost confidence and improve structural growth in the years ahead.” Senior government officials have hinted that Berlin is mulling more fiscal stimulus linked to a comprehensive package of climate protection measures. Some suggested the government could even take on new debt to finance those steps.

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The new government wants all the applause, but given they’ve been in power mere weeks, that doesn’t fly.

More worrying is that police have started evicting migrants and refugees from Exarchia, known as an anarchist neighborhood, where 1000s are living in squats. Where will they go now?

Tsipras was a big disappointment, but Greece in no country for a right wing government right now. It can only lead to violence.

Lifting Of Greek Capital Controls Signals Return To Normalcy (K.)

In what is seen as a move symbolizing Greece’s return to normalcy, Prime Minister Kyriakos Mitsotakis Monday announced the full lifting of capital controls, earlier than the government had initially envisaged. “Capital controls are as of today a thing of the past,” Mitsotakis declared in Parliament, adding that the restrictions had been imposed in June 2015 as a result of SYRIZA-led government policies that resulted in the flight of millions of euros from bank deposits. Stressing that “a four-year cycle of insecurity” has come to an end, he said a “new cycle of optimism has begun for the economy and the banking system” and added that since his center-right New Democracy party was elected in July “faith has been restored in the Greek economy and banking system.”

For his part, Finance Minister Christos Staikouras lamented the capital controls as “a destabilizing factor, an instability factor for the banking system.” He added that the complete abolition of restrictions will be effective as of September 1. The prime minister’s announcement came after officials of the Finance Ministry met with members of the country’s banks and the Capital Markets Commission earlier in the day. Bank of Greece Governor Yannis Stournaras had recommended in July that the final restrictions be lifted after observing a continuing increase in bank deposits. One of the key aims of the abolition of all restrictions is Greece’s upgrading by credit agencies, a move that will bolster investor interest.

Meanwhile, hours after the premier’s announcement, former finance minister Euclid Tsakalotos accused the government of piggybacking on his administration’s efforts to lift restrictions. “The only reason that capital controls had not been fully lifted was the banks’ reluctance due to political uncertainty [caused by] the elections. In any case, this is a positive step, which was fully prepared by SYRIZA,” Tsakalotos said. He said that the New Democracy government was benefiting from the SYRIZA administration’s economic legacy, adding that “we are still far from seeing a clear [ND] initiative.” “Of course, in the case of New Democracy, not having its own economic policy is probably better than having one,” he added.

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The state demanded $17 billion.

Johnson & Johnson Gets $572mn Slap On Wrist For Opioid Crisis In Oklahoma (RT)

Johnson & Johnson caused Oklahoma’s opioid crisis by pushing pain pills on the state and lying about their safety, a judge has declared in a landmark ruling, imposing a penalty on the pharma giant that amounts to pocket change. The company “caused an opioid crisis that is evidenced by increased rates of addiction, overdose deaths and neonatal abstinence syndrome, in Oklahoma,” Judge Thad Balkman of Cleveland County District Court ruled on Monday, declaring the “misleading marketing and promotion” of its products had “compromised the health and safety of thousands of Oklahomans.”

Johnson & Johnson’s drugs division, Janssen, supplied 60 percent of the opiate ingredients used to manufacture the deadly painkillers and lied about the safety and effectiveness of its products, state prosecutors charged. Using misleading promotional tactics to convince doctors to overlook the addiction risk, Janssen pushed opioids – including its own drugs, Duragesic and Nucynta – on medical professionals by colluding with pain patient advocacy organizations to enshrine pain as the “fifth vital sign” and opioids as the obvious remedy. The Johnson & Johnson suit is the first public-nuisance lawsuit against a drug company to go to trial, and Oklahoma’s victory means that the case will likely pave the way for future legal action against drug companies.

The state had sought $17 billion from Johnson & Johnson to remediate the crisis – a process Oklahoma officials claimed would end up costing between $12.7 and $17.5 billion. It was awarded just $572 million, a sum Balkman said was the maximum allowed under the public nuisance law and which pales in comparison to the company’s annual revenues, which totaled $82 billion last year. However, he left the door open to “additional programs and funding” that could be required “over an extended period of time.”

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Germany’s Der Spiegel sent entire teams of reporters all over the globe for comprehensive coverage. 3 long articles.

How Did the 737 Max Get Approved in the First Place? (Spiegel)

As has always been the case with large scandals, it is difficult to pinpoint the beginning. But there are plenty of reasons for identifying the year 2008 as the start of the 737 Max crisis, when Lufthansa made an announcement at the Farnborough Airshow that it planned to buy 30 Bombardier CS100s for its subsidiary Swiss. The jets, which are a bit smaller than the A320 and the Boeing 737, were a completely new model and, according to a former senior Lufthansa executive, that model was “the best on the market at the time.” The deal came as a provocation to the management of Airbus and Boeing, spoiled as they had been by success, and they reacted. But Airbus reacted more quickly and rapidly developed the A320neo.

The Dec. 1, 2010 announcement by the Europeans that the entire A320 family would be re-engineered and outfitted with new, unusually fuel-efficient and quiet engines must have hit Boeing’s Chicago headquarters like a bolt of lightning. Airbus promised to sink kerosene consumption by an entire 15 percent. And the year after the announcement, Airbus promptly sold more than 1,000 A320neo planes — with many longtime Boeing customers among the purchasers. At the time, Boeing had no fully developed plan for a new model or an acceptable new version of the 737. Most importantly, the company was not in a position to be able to install the new generation of jet engines on its planes. So, the industry was quite surprised when Boeing, just nine months later, appeared to catch up to Airbus.

In late August 2011, the construction of the 737 Max was announced, and the company even promised that the plane could be operated 7 percent more cheaply than the A320neo. It seems safe to assume that it was a difficult period for Boeing engineers. Even the smaller CFM56 turbines could only be crammed under the wings of the old 737 by resorting to a handful of tricks. But the CFM LEAP, which Airbus intended to use, has an air intake that is almost two meters in diameter — and the Boeing engineers had to fit them onto a plane where they didn’t fit at all. Once again, they tried to compress the engine shape. And once again, they commissioned a customized, smaller version of the engine. They tried pretty much everything to create more space under the plane, even lengthening the landing gear by 20 centimeters. The most important change, though, was installing the turbines a bit higher on the wings and quite a bit further forward.

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Some people have weird hobbies.

Pluto Is A Planet, NASA Chief Says (Ind.)

Pluto’s status as a planet has once again been called into question after the head of Nasa said he believed the celestial body to be a planet. Speaking at the FIRST Robotics event in Oklahoma, Nasa administrator Jim Bridenstine went against convention by placing himself firmly on one side of the Pluto debate. “Just so you know, in my view Pluto is a planet,” he said. “You can write that the Nasa administrator declared Pluto a planet once again. I’m sticking by that, it’s the way I learned it and I’m committed to it.” Pluto was first declared a planet in 1930 after it was discovered by American astronomer Clyde Tombaugh.


At the time it was believed to be the ninth planet from the Sun, existing on the outer edges of the solar system in the Kuiper belt. Its status as a planet was called into question 62 years later after other similarly-sized objects were discovered in the same region of space. In 2005, astronomers discovered a dwarf planet called Eris that was 27 per cent larger than Pluto. A year later, the International Astronomical Union laid out its official definition for what constituted a planet. Pluto was not included. Since then it has been classified as a dwarf planet, though the icy object has attracted a dedicated following of people who claim Pluto should be considered a planet.

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Aug 232019
 


Odilon Redon Breton harbor 1879

 

Seeking Clarity From Fed’s Powell? Good Luck With That (R.)
Japan’s July Core Inflation Hovers At Two-Year Low, Adds Pressure On BOJ (R.)
Bernie Sanders Reveals $16.3 Trillion Green New Deal (R.)
Another FBI Failure Involving The Clintons Surfaces (Solomon)
Boeing Jumps On Reuters Report Of Record 737 Production Target (ZH)
Macron Says UK Can Still Revoke Article 50 And Cancel Brexit (Ind.)
US Teachers Are Again Opening Up Their Wallets To Buy School Supplies (EPI)
Wildlife Meeting Backs More Protection For Giraffes (AFP)
Bolsonaro Burns Down The Amazon (G.)
French Mayors Ban Glyphosate Weedkiller, Defying Government (R.)

 

 

Futility in action.

Seeking Clarity From Fed’s Powell? Good Luck With That (R.)

When Federal Reserve Chair Jerome Powell speaks in Jackson Hole, Wyoming, on Friday, traders will comb through his remarks for clues on whether the U.S. central bank will deliver more rate cuts this year. They may be disappointed. For all his reputation as the most plain-spoken person to run the U.S. central bank in decades, if not ever, Powell may be reluctant in his remarks to fellow central bankers at this year’s Kansas City Fed economic symposium to say much about where rates will go. The reason: he may not actually know, and does not want to get locked in.

Fellow Fed policymakers, even those who supported July’s rate cut, are signaling reluctance to do more, with Philadelphia Fed chief Patrick Harker calling for a wait-and-see approach and Dallas Fed chief Robert Kaplan saying he is “open minded” but would “like to avoid having to take further action.” Since the Fed cut rates in July, the U.S. economic picture has darkened. New threats by President Donald Trump to impose additional tariffs on China, and then a decision to defer some of those new taxes until December, are boosting already heightened uncertainty for businesses. U.S. factory activity is on the decline.


Globally, dozens of central banks are cutting rates and some economies look poised to fall into recession. Finally, in a signal that investors are increasingly worried about a U.S. recession, yields on 2-year Treasuries sank below those 10-year debt on Thursday in yet another “yield curve inversion.” At the same time, labor markets remain strong and consumers continue to spend at stores and online. Part of the reason the yield curve inverted is because the U.S. economy remains so much stronger than much of Europe: investors would rather have “safe” U.S. Treasuries, even with their dropping yields, than say, German bonds with a negative yield.

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What is it now, 20 years? Good lord.

Japan’s July Core Inflation Hovers At Two-Year Low, Adds Pressure On BOJ (R.)

Japan’s core consumer inflation wallowed at a two-year low in July, increasing pressure for the central bank to acknowledge price momentum was slowing and expand its radical stimulus program. With the global economy hit by the Sino-U.S. tariff war and a pick-up in demand in the second half of the year uncertain, attention has turned to global central banks to gauge their readiness for further stimulus. Indeed, expectations that the BOJ will ease further have grown, a recent Reuters poll showed, after the central bank at its last policy meeting committed to expanding stimulus if a global slowdown prolongs and threatens to derail Japan’s economic recovery.

The core consumer price index, which includes oil products but excludes fresh food prices, rose 0.6% in July year-on-year, matching economists’ median estimate. The reading for July matched the previous month’s gain, which was the slowest pace since July 2017 when the index climbed 0.5%. The so-called core-core CPI, which excludes the effects of volatile food and energy costs, was also up 0.6% in July from a year earlier. It is closely watched by the BOJ to gauge how much the economy’s strength has translated into price gains. But the data indicates the central bank remains well behind in its efforts to achieve its 2% inflation target as an eight-month long export slump on the back of the U.S.-China trade war and slowing global demand take a toll on the world’s third-largest economy.


“It’s just a matter of time before the BOJ acknowledges that the momentum of a higher inflation rate is being lost,” said Masaaki Kanno, chief economist at Sony Financial Holdings.

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Looks like it’s only a switch from one source to another. Blind. Useless.

Bernie Sanders Reveals $16.3 Trillion Green New Deal (R.)

Democratic presidential hopeful Bernie Sanders on Thursday unveiled a $16.3 trillion climate change strategy on a tour of northern California that included meeting families displaced by deadly wildfires and a rally in the state capital Sacramento. The plan would “launch a decade of the Green New Deal”, a 10-year federal “mobilization” that would factor climate change into every policy action from immigration to foreign policy while promising to create 20 million jobs in the process. The U.S. would generate 100% of its electricity from renewable energy by 2030 and achieve “full decarbonization” by 2050, according to the plan.

“We are going to invest massively in wind, solar and other sustainable energies,” Sanders told a cheering crowd that had braved near triple digit temperatures to see him in a downtown Sacramento park. Addressing about 5,000 people inside and outside the park, Sanders accused fossil fuel companies of being willing to destroy the planet for short-term profits. “We cannot turn our backs on this crisis,” Sanders said. “We have got to lead the entire world in a new energy direction.” His plan outlines dozens of policies to aggressively move the United States off fossil fuels in the electricity, transportation and building sectors.


It aims to restore U.S. leadership and financial aid under the Paris Climate Agreement and spend trillions of dollars to assist fossil fuel workers and vulnerable minority communities in the transition to a green economy. It bans the practice of fracking to extract natural gas and oil, the import and export of fossil fuels and sets a moratorium on nuclear power plant license renewals. Sanders’ plan comes a day after Washington state Governor Jay Inslee, who made climate change the centerpiece of his campaign, dropped out of the race for the Democratic party’s nomination to try to unseat Republican Donald Trump as president in 2020.

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Starting to think the breakthrough needed will come from a source other than Bill Barr.

Another FBI Failure Involving The Clintons Surfaces (Solomon)

As I previously wrote, then-FBI Director Comey’s original draft findings in the Clinton case concluded her transmission of classified emails through an unsecure server was “grossly negligent,” the legal standard supporting a felony charge under the Espionage Act. But the findings were edited and the term changed to “extremely careless,” and Comey chose on his own to announce on July 5, 2016, that he would not seek criminal charges, a decision that the DOJ’s IG concluded had wrongly usurped prosecutors’ authority to make charging decisions. In addition, as I have written, FBI general counsel James Baker believed — almost until the last minute before Comey’s announcement — that Clinton should, in fact, face criminal prosecution, but he was talked out of it.

And in a passage that often gets overlooked by reporters and pundits alike, IG Horowitz concluded in his final report about the Clinton email caper that the anti-Trump biases that FBI agent Strzok and bureau lawyer Lisa Page expressed in text messages may have affected their decision-making to focus more urgently on the now disproven Trump-Russia collusion allegations rather than to finish work on the former secretary of state’s email problems, an investigation code-named Midyear. “In assessing the decision to prioritize the Russia investigation over following up on the Midyear-related investigative lead … we were particularly concerned about text messages sent by Strzok and Page that potentially indicated or created the appearance that investigative decisions they made were impacted by bias or improper considerations,” the Justice’s watchdog wrote.


So the FBI’s chief lawyer originally thought Clinton should be indicted, and the bureau wrote a draft supporting the felony standard, but then walked back its decision. And agents focused more on unsubstantiated Trump collusion than Clinton emails in what the IG feared might be a sign of bias. And now we learn the FBI willfully chose to ignore highly classified evidence in the Clinton email case and has stonewalled Congress for a year on whether it intends to reexamine that evidence. It’s exactly that sort of behavior that leaves many Americans wondering whether there are two systems of justice inside the FBI — one for the Clintons, and one for the rest of the country.

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It’s not just the FAA, regulators everywhere must clear the 737 MAX. Some of them will be very reluctant.

Boeing Jumps On Reuters Report Of Record 737 Production Target (ZH)

The Dow has managed to levitate into the red following a Reuters report that sent the stock of Dow heavyweight Boeing higher, according to which Boeing told suppliers it will resume production of its best-selling 737 jets at a rate of 52 aircraft per month in February 2020, then stepping up to a record 57 jets monthly in June. There is, of course a catch: the aerospace giant will only be able to boost production if the FAA clear the plane. To wit, Boeing told more than 100 suppliers during at least one Web meeting July 30 that the new schedule depended upon regulators approving the 737 MAX to fly again commercially in the fourth quarter. Of course, since the entire report is contingent on the firm getting a greenlight, it is nothing more than a trial balloon, and also an attempt by Boeing to make the FAA responsible for the future wellbeing of Boeing shareholders.


As Reuters notes, one of the sources “expressed skepticism over the timing given the intense scrutiny from regulators that grounded the 737 MAX after deadly crashes killed nearly 350 people in Ethiopia and Indonesia in the span of five months.” More to the point, there is no guarantee when regulators will clear the 737 MAX to fly again, and Boeing Chief Executive Dennis Muilenburg told analysts last month that Boeing would consider further 737 output cuts or potentially suspending production if the grounding dragged on. In other words, Boeing production could be a record in Q2 2020… or it could be zero.

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Have a nice flight home Boris.

“..a trade deal with the United States. “Even if it were a strategic choice it would be at the cost of a historic vassalisation of the British state,” Mr Macron said.”

Macron Says UK Can Still Revoke Article 50 And Cancel Brexit (Ind.)

Emmanuel Macron has insisted Article 50 can still be revoked “up to the last second”, as he warned Boris Johnson a no-deal Brexit would be Britain’s fault. As the two leaders prepared to hold their first face-to-face meeting in Paris, Mr Macron once again dismissed the prime minister’s repeated demands to reopen the withdrawal agreement as “not an option”. In highly-critical remarks on the eve of talks, the French president also said the UK would be the “main victim” of a hard Brexit, as he warned the cost would not be offset by a trade deal with the United States. “Even if it were a strategic choice it would be at the cost of a historic vassalisation of the British state,” Mr Macron said. “I don’t think that is what Boris Johnson wants.”


Rejecting accusations the bloc would be at fault for a no-deal Brexit, he continued: “It will be the responsibility of the British government, always. “Firstly it was the British people that decided Brexit, and the British government has the possibility up to the last second to revoke Article 50.” The frank comments from Mr Macron could overshadow Mr Johnson’s first meeting in Paris as prime minister, as the pair meet for a working lunch to discuss the current state of Britain’s exit from the EU.

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How sad is this? The new normal in the UK too. Don’t know about other countries.

US Teachers Are Again Opening Up Their Wallets To Buy School Supplies (EPI)

It’s the beginning of the school year, a time of eager anticipation and hopeful expectations. Amid the excitement, parents are engaged in practical tasks, including opening their wallets to stock their children’s backpacks with school supplies. Teachers, too, are gearing up to go back to their classrooms by opening their wallets to buy classroom supplies. An overwhelming majority of them—more than nine out of 10—will not be reimbursed for what they spend on supplies over the school year, according to survey data from the National Center for Education Statistics (NCES).

The nation’s K–12 public school teachers shell out, on average, $459 on school supplies for which they are not reimbursed (adjusted for inflation to 2018 dollars), according to the NCES 2011–2012 Schools and Staffing Survey (SASS). This figure does not include the dollars teachers spend but are reimbursed for by their school districts. The $459-per-teacher average is for all teachers, including the small (4.9%) share who do not spend any of their own money on school supplies.


Unlike the data from the more recent 2015–2016 survey (now called National Teacher and Principal Survey or NTPS), the 2011–2012 SASS microdata provide state-by-state information, allowing us to see how much teachers spend on supplies by state. The map below shows the inflation-adjusted state-by-state spending. We know that the figures in the map are not an atypical high driven by the Great Recession because the 2011–2012 spending levels are lower than spending levels in the 2015–2016 NTPS data. The figure after the map shows that teachers’ unreimbursed school supply spending has actually increased overall since the recovery.

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But of course they fight over this too.

Wildlife Meeting Backs More Protection For Giraffes (AFP)

Wildlife-supporting countries on Thursday backed regulating international trade in giraffes in a bid to offer more protection to the gentle giants, feared to be facing a “silent extinction”. The vote in Geneva by parties to the Convention on International Trade in Endangered Species (CITES) recognises for the first time that international trade is part of the threat facing giraffes. The decision, which passed with 106 votes in favour to 21 votes opposed and seven abstaining, took place in committee and still needs a stamp of approval by the full CITES conference before it wraps up on August 28.

The African giraffe population as a whole has shrunk by an estimated 40 percent over the past three decades, to just under 100,000 animals, according to the best figures available to the International Union for Conservation of Nature (IUCN). And yet Thursday’s vote, which implies listing all giraffes under CITES Appendix II and thus requiring tracking and regulation of all trade in the species, was highly controversial. The proposal to list the giraffe came from a range of countries in western, central and eastern Africa, where giraffe populations have been particularly hard hit. Chad’s representative argued that “illegal cross-border trade (poses) a significant threat to the survival of giraffes.”


But they met harsh resistance from southern African countries where the populations have traditionally been better protected and are healthier. Countries, including South Africa, Botswana and Tanzania, maintained there was little evidence that international trade is contributing to the decline of the giraffe. And they argued that imposing international regulations was unfair to countries that have strived to protect their giraffes. “Such a decision fails to recognise our conservation achievements,” the Tanzanian representative said.

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Time to boycott Brazil.

Bolsonaro Burns Down The Amazon (G.)

The Amazon is the centre of the world. Right now, as our planet experiences climate collapse, there is nowhere more important. If we don’t grasp this, there is no way to meet that challenge. For 500 years, this has been a place of ruins. First with the European invasion, which brought a particularly destructive form of civilisation, the death of hundreds of thousands of indigenous men and women and the extinction of dozens of peoples. More recently, with the clearance of vast swaths of the forest and all life within it. Right now, in 2019, we are witnessing the beginning of a new, disastrous chapter. The area of trees being cleared has surged this year. In July, the deforestation rate was an area the size of Manhattan every day, a Greater London every three weeks.


This month, fires are incinerating the Amazon at a record rate, almost certainly part of a scorched-earth strategy to clear territory. Why is this happening now? Because of a change in power. A predatory form of politics called Bolsonarism has assumed nearly total, and totalitarian, power in Brazil. President Jair Bolsonaro’s chief project is to create more ruins in the Amazon forest, methodically and swiftly. This is why, for the first time since Brazil became a democracy again, it effectively has a minister against the environment. For more than 30 years no environment minister has enjoyed the same autonomy as Ricardo Salles. He is a gofer for agribusiness, which is responsible for the majority of the deaths in the fields and forests, and Brazil’s greatest destructive force. The landowners lobby has always been part of Brazil’s government, formally or not. But today, this has reached a new level. They are not just in the government, they are the government.

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It’s the farmers who want Roundup. Crazies.

French Mayors Ban Glyphosate Weedkiller, Defying Government (R.)

Some 20 French mayors have banned glyphosate from their municipalities, defying the government, which is now taking legal action to impose national legislation which allows the controversial weedkiller’s continued use for now. In 2017, President Emmanuel Macron had pledged to ban glyphosate in France within three years, rejecting a European Union decision to extend its use for five years after heated debate over whether glyphosate, developed by Bayer-owned Monsanto, can cause cancer. But Macron has since said that a blanket ban is not possible within that time frame.

Bayer says regulators and extensive research have found glyphosate to be safe. On Thursday, the administrative tribunal of Rennes, western France, heard the mayor of Langouet, Brittany, who has banned the use of pesticides in his town within 150 meters of people’s homes and workplaces. Mayor Daniel Cueff told the court – which is set to rule next week – the ban was aimed at protecting residents from molecules considered a health risk. About 300 people attended the hearing and nearly 100,000 have signed a petition to support Cueff’s ban. A lawyer for the French state argued that is not in a mayor’s powers to ban phytosanitary products, which are regulated by the agriculture ministry.


The ministry declined to comment, but Agriculture Minister Didier Guillaume said in January France will phase out 80% of its glyphosate usage by 2021. Farmers’ unions opposed the ban, saying there are no viable alternatives for the chemical and that a transition to organic farming is too costly. Allowing the mayor to override the state over glyphosate “would be the return of the local barons and the reign of the lords over their serfs,” Cedric Henry, head of Brittany farmers union FDSEA-35 said in a statement.

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The Amazon is burning.

 

 

 

 

 

Aug 132019
 


Pablo Picasso Girl with a boat (Maya Picasso) 1938

 

Argentine Stocks Plunge Over 50% In One Day (AFP)
Hong Kong’s Leader Warns City Faces ‘Path Of No Return’ (AFP)
China Media Says Hong Kong Protesters ‘Asking For Self-Destruction’ (CNBC)
Boris Johnson Expects EU To Cave In To Save Ireland From No-Deal Brexit (R.)
Mortgage Rate Cuts Aren’t Boosting Housing (DDMB) span>
Have Prosecutors Lost Track Of Ghislaine Maxwell? (VF)
One Of People Watching Epstein Not A Proper Prison Guard (Ind.)
300 Brits Named In FBI dossier On Jeffrey Epstein (M.)
Fergie Feels Heat For Hubby Andrew Meeting Epstein (M.)
New FAA Head To Assess Agency Performance In Wake Of 737 MAX Crashes
Plastic Falls From The Sky In Rocky Mountains (G.)
Farm Rot is Eating America Alive (CP)

 

 

Argentina’s stock market plunged 48% in USD today, marking ‘the second-biggest one-day rout on any of the 94 stock exchanges tracked by Bloomberg going back to 1950.’

Argentine Stocks Plunge Over 50% In One Day (AFP)

Pro-business President Mauricio Macri predicted worse would follow after Argentina’s peso and the Buenos Aires stock exchange plummeted Monday following his crushing defeat by populist candidate Alberto Fernandez in a party primary election. Markets panicked as the peso closed at 57.30 to the dollar, a drop of 18.76 percent from its Friday closing figure, while the Merval index crashed 38 percent by close. On the New York stock exchange, Argentine bonds lost around 20 percent and shares in companies from the recession-hit South American country hemorrhaged more than 50 percent.


“This is just a taste of what’s going to happen” if the Peronist Fernandez, whose running mate is corruption-tainted former president Cristina Kirchner, comes to office, Macri warned. “This is about the past, there’s a ton of people who don’t keep their money in this country, who are leaving this country. It’s incredible what could happen.” Ever since taking office, Macri has blamed Argentina’s economic woes on the polices enacted by three successive Kirchner governments — Cristina Kirchner’s 2007-15 time in office was preceded by a single term for her late husband Nestor. “We cannot go back to the past because the world sees this as the end of Argentina,” said Macri.

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But the protesters are back at the airport.

Hong Kong’s Leader Warns City Faces ‘Path Of No Return’ (AFP)

Violent protests are driving Hong Kong down a “path of no return”, the city’s leader warned Tuesday as its airport struggled to recover from an unprecedented shutdown triggered by a rally and authorities in Beijing sent more ominous signals that the unrest must end. The airport, one of the busiest in the world, re-opened on Tuesday morning but hundreds of flights remained cancelled and protesters called for a new rally there later in the day. The abrupt closure came 10 weeks into a crisis that has seen millions of people take to Hong Kong’s streets in the biggest challenge to Chinese rule of the semi-autonomous city since its 1997 handover from Britain.


Hong Kong leader Carrie Lam warned Tuesday of the dangerous consequences facing the city, one of Asia’s most important financial hubs, if escalating violence at the rallies was not curbed. “Violence, no matter if it’s using violence or condoning violence, will push Hong Kong down a path of no return, will plunge Hong Kong society into a very worrying and dangerous situation,” Lam said. “The situation in Hong Kong in the past week has made me very worried that we have reached this dangerous situation.” Lam, who faced fierce questioning from local reporters and at one point appeared to be on the verge of tears, appealed for calm. “Take a minute to think, look at our city, our home, do you all really want to see it pushed into an abyss,” Lam said, although she again refused to make any concessions to the protesters.

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How much of it is bluff?

China Media Says Hong Kong Protesters ‘Asking For Self-Destruction’ (CNBC)

The People’s Daily, the official newspaper of China’s Communist Party, posted on Chinese social media a statement saying the People’s Armed Police are in Shenzhen prepared to handle “riots, disturbance, major violence and crime and terrorism-related social security issues.” In a Tuesday social media post from the Global Times‘ Chinese edition, the outlet said “if Hong Kong rioters cannot read the signal of having armed police gathering in Shenzhen, then they are asking for self-destruction,” according to a CNBC translation. China is “implying they might send in the People’s Liberation Army or issue direct intervention but they don’t want to,” according to Ben Bland, a director at Sydney-based policy think tank Lowy Institute.


”(Beijing) hopes that the signals will scare protesters to back down,” but if and when Beijing decides to deploy troops they will not “advertise it,” he told CNBC. This is all part of a “delicate dance between China and Hong Kong” that’s reached a critical point because there is almost no common ground or overlapping interests between the protesters and Beijing, Bland added. Although China’s leaders do not want to deploy the PLA, they are “willing to do it if they have to,” the Asia politics expert said. Hong Kong’s former governor, Chris Patten, said on Tuesday that if China intervened in the city, it would be a “catastrophe” and that Chinese President Xi Jinping should see the wisdom of trying to bring people together. Patten called on British Prime Minister Boris Johnson to garner support from its allies to ensure Beijing does not intervene.

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That’s quite the gamble.

Boris Johnson Expects EU To Cave In To Save Ireland From No-Deal Brexit (R.)

British Prime Minister Boris Johnson believes the European Union will cave in at the last minute and do a Brexit deal with him to “save Ireland”, the Sun newspaper reported on Monday, citing a source. A no-deal Brexit would hurt Ireland the most and Johnson is convinced European leaders will budge over the key issue of the so-called Irish backstop, the Sun said. The EU has said it is not prepared to reopen the divorce deal it agreed with Johnson’s predecessor Theresa May which includes the backstop – an insurance policy to prevent the return to a hard border between the British province of Northern Ireland and EU-member Ireland.

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Here’s a string to push on.

Mortgage Rate Cuts Aren’t Boosting Housing (DDMB) span>

Federal Reserve Chairman Jerome Powell is facing a housing conundrum. The market is in the midst of a 15-month slump, with home price gains and sales having slowed dramatically and permits to build new dwellings slumping by 6.6% to the lowest level in more than two years. This despite a big drop in market interest rates thanks to the Fed’s dovish pivot earlier this year. Of course, a recession would pull down prices and solve the affordability problem (a National Association of Realtors index shows housing is less affordable now than any time since before the financial crisis). But a recession is exactly what Powell hopes to avoid by lowering benchmark interest rates that are already near historic lows.

The thing is, though, 30-year mortgage rates are already at a very low 3.75%, down from almost 5% in November, and housing hasn’t responded. Applications to purchase a home have declined for four weeks running according to the latest Mortgage Bankers Association data. It’s not clear that even lower rates will help. Meanwhile, plans to buy a home within six months are at multi-year lows and look to have turned for the cycle. The value of residential construction is 7.8% lower than the first six months of 2018, accelerating a trend that’s seen a persistent contraction for six quarters, the longest stretch since the last recession. mThere is, however, some appetite to purchase a new home, albeit off a very low base. And while off the lows from last year’s spike in mortgage rates, buyer traffic in those model homes has been negative for nine consecutive months.

There can be benefits to a true housing recession. If the Fed can manage to contain itself and hold the line on negative interest rates, even a small contraction should be enough to flush the proliferation of speculators out of the market. Stories abound of homes swept up at auction that might have otherwise been razed, as in eradicated from the housing stock altogether. Think of these dwellings as the equivalent to the “zombie” companies that have hung on thanks to artificially low rates that spurred a boom in the market for junk bonds and loans. The divergent trend between residential and nonresidential investment is striking, reflecting malls across America being bulldozed and the build out of a warehouse nation.

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“There were rumors on Monday afternoon that indictments of five people were imminent.”

Have Prosecutors Lost Track Of Ghislaine Maxwell? (VF)

Is it possible prosecutors have lost track of Ghislaine Maxwell, Jeffrey Epstein’s alleged co-conspirator in his pedophile ring? For the past few weeks, rumors have circulated that she’s 400 pounds and living in Florida, or that she’s living the high life in London or the Continent, but according to the Washington Post, authorities are having a hard time locating her. Those who know her say that it’s possible she is as much of a Houdini as Epstein. Both of them liked having secrets, and the way those secrets kept people off balance. “Jeffrey always wanted to give the impression that he was an international man of mystery—‘I control everyone and everything, I collect people, I own people, I can damage people,’” says an ex-girlfriend.

As part of Epstein’s original plea deal, negotiated with Alexander Acosta, the others implicated were also given immunity from prosecution, which is partly why victims like Virginia Roberts Giuffre pursued her and others in civil courts. But Epstein’s death has not stopped the current investigation. “We remain committed to standing for you,” Geoffrey Berman, U.S. Attorney for the Southern District of New York, wrote in a statement after Epstein’s death, “and our investigation of the conduct charged in the Indictment—which included a conspiracy count—remains ongoing.” There were rumors on Monday afternoon that indictments of five people were imminent.

The nature of the relationship between Epstein and Maxwell, the favorite daughter of embezzling press baron Robert Maxwell, who died when he fell or was pushed from his yacht, the Lady Ghislaine, is not well known. Multiple victims claim she was both part of the sex trafficking ring, often bringing girls to Epstein, and a sexual participant. But Epstein told of-age women he courted that Maxwell was a former girlfriend fallen on hard times, and that he had taken it upon himself to maintain her position in society. “Ghislaine floated in and out of the house with the keys, and even though Jeffrey told me they didn’t have a sexual relationship, she’d drop under her breath that she was sleeping in his bed from time to time,” says an ex-girlfriend.

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The conspiracy gods are giving us the finger.

One Of People Watching Epstein Not A Proper Prison Guard (Ind.)

One of the two people monitoring Jeffrey Epstein in the hours before his death was not a properly trained prison guard, it has been reported. As attorney general William Barr condemned “serious irregularities” at the jail where he was being held on bail, and the world waited news of details of an autopsy amid huge speculation and frenzied conspiracy theories, it emerged the 66-year-old disgraced financier had not been checked for several hours before he was found dead in his cell. Epstein, who was last month arrested and accused of orchestrating a sex trafficking network involving girls as young as 14, had not been on suicide watch at the time of his death.


Regulations did call for him to be checked every 30 minutes, however. These rules were put into place after the man who was once a friend of multiple powerful men and celebrities, was was last month found unconscious on the floor of his cell with marks on his neck, an episode officials were investigating as possible suicide attempt or assault. The New York Times said only one of the two people who were monitoring Epstein at the Metropolitan Correctional Centre in New York City, was a “fully-fledged correctional officer”.

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Looks like this is the file that was unsealed on Friday (2,000 pages). That was for Virginia Giuffre’s case vs Ghislaine Maxwell, but I didn’t see it referred to as an FBI dossier before.

300 Brits Named In FBI dossier On Jeffrey Epstein (M.)

The FBI’s 2,000-page dossier on Prince Andrew’s paedophile friend Jeffrey Epstein includes details of 301 British associates from the pervert’s address book. FBI agents raided Epstein’s private US Virgin Island, dubbed “paedophile island”, yesterday as the sex-trafficking probe continued, despite his apparent suicide, aged 66, on Saturday. US officials have also vowed to carry on probing Epstein’s ties to the UK amid fears about his offending overseas. And MPs are calling for an investigation into the Duke of York s relationship with Epstein. Virginia Giuffre claims she was a victim of sex trafficking by Epstein and “loaned” to Prince Andrew for sex three times, which he vehemently denies.

[..] US investigators who looked at Epstein’s “little black book” found almost half of it read like a who’s who of British society. His 301 British contacts had more than 1,000 numbers and dozens of email addresses between them. There is no suggestion the presence of their names in the book means any are accused of any wrongdoing or even met Epstein in person. The contacts included celebrities such as Mick Jagger, Simon Le Bon, the late Sir David Frost, Richard Branson, Naomi Campbell, Tamara Beckwith, Jonathan Dimbleby, Loyd Grossman and numerous lords and ladies. Former Prime Minister Tony Blair is recorded once, while his former cabinet minister Lord Peter Mandelson has 10 numbers, including one marked “direct line” one for “home” and another for “country home”.

There are 16 numbers for Prince Andrew, including a mobile number, one marked “Palace ex-directory”, one for Balmoral, the Queen’s Scottish residence, where the Prince invited Epstein, and one marked “Sand”, for Sandringham, another royal retreat where he spent time. Epstein also recorded 18 numbers for Prince Andrew’s former wife Sarah Ferguson, who took £15,000 off the paedophile to help pay off her debts.

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Andrew’s under fire. He invited Epstein into several royal palaces.

Fergie Feels Heat For Hubby Andrew Meeting Epstein (M.)

Sarah and Andrew have been “rekindling” their romance back at Balmoral on holiday with the Queen. Until Sunday’s headlines about another wealthy American saw Fergie fleeing the royal fold in panic. Because paedophile Jeffrey Epstein, the pal who helped clear her debts, had killed himself – leaving secrets that could draw Andrew deeper into a sordid sex scandal involving teenage girls. And while the royals are standing by Andrew, who categorically denies any suggestion of impropriety with underage minors, Fergie fears she will take more flack over Andrew’s friendship with the disgraced financier. For it was Sarah who first introduced Andrew to “Good Time Ghislaine” Maxwell in the 1990s, before she introduced them to her lover Epstein.


Ghislaine became Andrew’s social fixer, his conduit into millionaire trans-Atlantic society. They were spotted dining on lobster salad, drinking champagne cocktails at a stylish Madison Avenue restaurant in New York in 2000. This was just a brief glimpse of Andrew’s new US life in the fast lane, all private jets, racy nightclubs and first-class treatment. When the Yorks divorced, Fergie’s profligate spending saw her rack up £5million in debts. In 2011, three years after Epstein was convicted of soliciting underage girls for prostitution, Sarah revealed he’d paid £15,000 to a personal assistant she owed.

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“..the Boeing 737 MAX “will not fly in commercial service until I am completely satisfied that it is safe to do so..”

New FAA Head To Assess Agency Performance In Wake Of 737 MAX Crashes

U.S. Transportation Secretary Elaine Chao said on Monday she has asked the new head of the Federal Aviation Administration (FAA) to assess the agency’s performance in the wake of two fatal crashes of Boeing Co’s 737 MAX planes since October. Chao, who administered the oath of office to new FAA Administrator Stephen Dickson, a former Delta Air Lines executive, at an event in Washington, said Dickson’s arrival “is an important opportunity to take stock of how well the FAA is doing in carrying out its critical safety functions.”


She added that she has asked Dickson “to assess the performance of the agency and the results of the ongoing investigations to make recommendations about any needed reforms.” Dickson reiterated the position of his predecessor, Dan Elwell, who has been the acting FAA chief since January 2018, that the Boeing 737 MAX “will not fly in commercial service until I am completely satisfied that it is safe to do so. FAA is following no timeline in returning the aircraft to service. Rather we are going to where the facts lead us.”

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We’re experimenting on our children.

Plastic Falls From The Sky In Rocky Mountains (G.)

Plastic was the furthest thing from Gregory Weatherbee’s mind when he began analyzing rainwater samples collected from the Rocky Mountains.“I guess I expected to see mostly soil and mineral particles,” said the US Geologic Survey researcher. Instead, he found multicolored microscopic plastic fibers. The discovery, published in a recent study titled “It is raining plastic”, is raising new questions about the amount of plastic waste permeating the air, water, and soil virtually everywhere on Earth. “I think the most important result that we can share with the American public is that there’s more plastic out there than meets the eye,” said Weatherbee. “It’s in the rain, it’s in the snow. It’s a part of our environment now.”


Rainwater samples collected across Colorado and analyzed under a microscope contained a rainbow of plastic fibers, as well as beads and shards. The findings shocked Weatherbee, who had been collecting the samples in order to study nitrogen pollution. “My results are purely accidental,” he said, though they are consistent with another recent study that found microplastics in France’s Pyrenees Mountains, suggesting that plastic particles could travel with the wind for hundreds, if not thousands, of kilometers. Other studies have turned up microplastics in the deepest reaches of the ocean, in UK lakes and rivers and in US groundwater.

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Farm Rot is Eating America Alive (CP)

The environment is the immense natural world that nourishes life and keep us alive. But instead of protecting and loving it, our corrupt Trump government signals to the business and billionaire classes the environment is theirs to exploit and destroy. The same confused mentality has been keeping the politicians mumbling about social problems, all but neglecting environmental policies that undermine the very ground under their feet. A look at that ground demolishes the bible of agribusiness: that our food is the safest in the world: that our agriculture is science-based. In the place of this fiction, farm rot is eating the country alive.

It’s a repeat of the early twentieth century when Upton Sinclair wrote about the mafia-like culture of food and agriculture: the complete absence of government regulation, the loathsome slaughterhouses of Chicago, the adulteration and poisoning of food. Scientists often publish dense articles about farming that, reading between the lines, you grasp the dreadful effects of our irresponsible decisions of allowing farmers to do as they please. These farmers have been addicted to huge petroleum-fueled machines, mountains of petroleum-based fertilizers, and rivers of petrochemical poisons. These “inputs” undermine the fertility and life of the land. Petrochemicals fight nature, primarily by killing beneficial microorganisms in the soil and poisoning beneficial insects and other wildlife.

The vision of the petrochemical farmers is not diversity in crops, much less diversity in the natural world where they are producing food. No, their nightmare of “scientific” agriculture takes flesh in the cultivation of one crop at a time, covering a vast acreage. In this futile struggle against nature, farmers keep adding more of old sprays, and often replace old chemicals with newer more acutely deleterious materials. Petrochemical companies, and the land grant universities that have been inventing many of the toxic weapons of the farmers, keep the farmers hooked on ever newer hazardous substances.

This farm chemical warfare has been going on for several decades. Farmers, academic and business experts and environmentalists know about it, though rarely any one of them calls farm sprays chemical warfare agents. They hope against hope this process can last forever. But it won’t. It annot. Nature does not work that way. It does not hide its secrets like men do. Employ reason and science and the truth and beauty of nature is all over you. But pretend you are the king and knows best, that you have the right to dominate the natural world, and you face the abyss of destruction.

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Aug 082019
 


Piet Mondriaan New York City I 1942

 

Globalization As We Know It Will Not Survive Trump (G.)
The Technological Revolution Devours its Children (Dmitry Orlov)
Donald Trump More Popular Today Than In 2016 (Raw)
New York Times Stock Price Has Soared During Trump’s Presidency (R.)
MMT May Be Democrats’ Economic Cure, But Only Trump Got The Memo (R.)
New Rebel Bid To Halt No-Deal Brexit Amid Fury At PM’s Enforcer (G.)
Deal Or No Deal? It’s Not Really Up To Dominic Cummings (G.)
The Super-Rich Have Made Britain Into A Nation Of Losers (G.)
Airlines Complain Boeing’s Production Standards ‘Way Below Acceptable’ (BI)
An Open Invitation to Tyranny (PCR)
Chelsea Manning Jailed For a YEAR For Refusing To Testify Against Assange (RT)
Tightening Nickel Supply Threatens Electric Vehicle Boom (SH)
Apocalypse Now: Final Cut (G.)
Explosion of Toxic Pesticide Use Causes Insect Apocalypse in US (CD)

 

 

“And That’s A Good Thing..”

Globalization As We Know It Will Not Survive Trump (G.)

The significance of the trade war between China and the US goes well beyond the impact of tit-for-tat tariffs, or which of two self-styled strongmen wins the bragging rights. As was the case in the 1930s, the seemingly inexorable drift towards protectionism is part of a deeper crisis of the international status quo. When Beijing this week accused the US of “deliberately destroying the international order”, it was really saying that US hegemony will no longer go unchallenged. Globalisation as we have known it is coming to an end and that’s by no means unwelcome.

Hailed as the ultimate in human progress, a model based on loosening the controls on capital and the construction of global supply chains has spawned recurrent financial crises, fostered corrosive inequality and worsened the climate emergency. True, millions of people have been lifted out of poverty in the past 25 years, but most of them live in a country – China – that has kept the market at arm’s-length. The world’s stock markets see things differently. They tremble every time Donald Trump tweets a paean to protectionism. Likewise, multinational corporations fret about the possible damage that trade barriers might cause to global supply chains. It is clear that those who have done best out of globalisation tend to be the rich and powerful, and they are not going to give up their privileges without a fight. Nothing in this is new.

Throughout history there have been successive waves of globalisation followed by a backlash when the model over-reached itself. This is one of those occasions and all the ingredients are in place for a struggle between the defenders of the status quo and those who say that recent trends in politics, technology and the climate point to the need for a new world order focused more on local solutions, stronger nation states and a reformed international system. It’s quite a stretch to imagine that Trump has this in mind when he is bashing China, but the economic crisis of the 1930s – of which protectionism was one part – led eventually, albeit after the war, to reforms that made the world a sounder and safer place.


Illustration: Thomas Pullin

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“..once your savings are depleted and your debts are maxed out, you are cast out into the howling wilderness roamed by various troglodytes—those the information revolution has already eaten as well as those who were never on the menu.”

The Technological Revolution Devours its Children (Dmitry Orlov)

As the famous movie quote goes, “If you can’t spot the sucker in your first half hour at the table, then you are the sucker” (From John Dahl’s 1988 film Rounders). Another famous quote, all the way back from the French Revolution, is “The revolution, like Saturn, devours its own children” (said by Danton at his trial). If you can’t spot the resource for your next technological revolution, then you are the resource. Look at all the previous technological revolutions. In each case, a new technology opened up for exploitation a new, superabundant resource: agriculture—arable land; mechanical spinning and weaving—water power; steam engine and steelmaking—coal; internal combustion engine—oil; artificial intelligence-based robonanobiotronics—still oil?

Sorry, that’s no longer overabundant by any stretch of the imagination. (If you said “renewable energy” then think again: wind turbines, solar panels and battery banks can’t be made or maintained without oil and natural gas.) Technology without a superabundant resource it can tap into is as useful as a spoon if your bowl is empty. The logic is simple: spot the resource; if you can’t, it’s probably you. Let’s focus on what’s supposed to be the main pillar of the next technological revolution: information technology. Most of us have smartphones, laptops, store our data in the cloud and make use of abundant and free information resources—all the free apps you want, free blogging, free Youtube videos, etc. But what new resource has all this technology opened up for you, the user?

The hardware costs you money (the average iPhone now costs around 800 USD) and the time you spend fiddling around with it is subtracted from all the other, potentially useful and gainful activities. You could try arguing that having an iPhone makes you more efficient because you have all the information and communications technology you could possibly need right at your fingertips. That point is hard to deny. I recently recorded a radio interview for a radio station in upstate New York while strolling about among the potato blossoms on my field in the Novgorod region of Russia via the internet and a 4G connection via a tower in the neighboring village. That’s nothing short of miraculous, and it’s certainly efficient (my smartphone is 7 years old, fully amortized a long time ago and still as good as new now that I’ve replaced every single mechanical component, sometimes twice). But is it effective?

The smartphones are generally effective in making their users spend money that they may or may not have on things they may or may not need. All of the free access to information is paid for by collecting data on users (spying, basically) and using it to create targeted ads that turn users into online shoppers. Everything is highly customized: women look at pictures of shoes; men look at pictures of power tools. Both the shoes and the power tools, if purchased, will be used a few times a year at most, but the money will be gone forever. The limiting factor here, of course, is the resource, which is you: once your savings are depleted and your debts are maxed out, you are cast out into the howling wilderness roamed by various troglodytes—those the information revolution has already eaten as well as those who were never on the menu.

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Depends on who you ask.

Donald Trump More Popular Today Than In 2016 (Raw)

President Donald Trump’s administration has been mired in controversy after controversy, from his racist remarks to the Mueller report–which stopped short of clearing him of obstruction of justice. His policies, such as child separation at the border and his trade wars with China, are divisive. Yet, new numbers seem to show that he’s actually more popular today than he was in 2016, according to polling expert Nate Cohn. “The share of Americans who say they have a favorable view of him has increased significantly since the 2016 election,” Cohn writes. “And over the last few months, some of the highest-quality public opinion polls, though not all, showed the president’s job approval rating — a different measure from personal favorability — had inched up to essentially match the highest level of his term.”

This doesn’t guarantee Trump re-election. “The increase in his support since 2016, and the possibility that it continues to move higher, does not necessarily make him a favorite to win re-election. His job approval ratings remain well beneath 50 percent, and have never eclipsed it.” It should be noted that Cohn is relying on two polls, Gallup and YouGov, which show that he is more popular today than in 2016. And according to the website fivethirtyeight.com, which aggregates polling data, only 42.2 percent of Americans polled approve of Donald Trump, while 53.1 disapprove.

But, Trump’s surge in popularity since 2016 is clearly something his democratic challengers need to keep in mind. Of course, Democrats might benefit from a more popular candidate than they had in 2016,” Cohn writes. “Hillary Clinton was an unusually unpopular candidate, surpassed only by Mr. Trump in this regard in the modern era of polling. But an analysis that freezes the president’s standing in 2016 but assumes an improvement for the Democratic nominee would be misleading.”

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Cui bono. Inventing Russiagate out of thin air has paid off handsomely.

New York Times Stock Price Has Soared During Trump’s Presidency (R.)

Lieutenant Colonel Bill Kilgore concludes his “Apocalypse Now” soliloquy about the smell of napalm in the morning wistfully: “Someday this war’s gonna end.” The remark suggests the officer played by Robert Duvall is enjoying the conflict in Vietnam. Despite some recent friendly fire, New York Times commander-in-chief Mark Thompson could be forgiven for feeling similarly about his newspaper’s combat with U.S. President Donald Trump. Few companies have so directly benefitted from Trump’s tumultuous first term in office as the Times. Thanks to a boom in digital-subscription sales linked to the paper’s aggressive coverage of the administration’s many foibles, its shares have outperformed those of nearly every company investors pegged as those likely to suffer or benefit from a Trump presidency.

From around $11 at the time of his election, Times stock has soared to more than $35. That trumped the runup in Wall Street firms, such as Goldman Sachs and Morgan Stanley, whose bottom lines were fattened by tax cuts. Times shares even dusted those of Facebook, the bête noire of all traditional publishers. As of Tuesday, the Manhattan-based company’s $5 billion market value was greater than the combined worth of America’s two biggest for-profit prison operators, whose fortunes were meant to soar under a law-and-order presidency. This background helps in interpreting a set of lousy second-quarter results, and a kerfuffle this week over a poorly conceived front-page headline. The Times added 197,000 net new digital-only subscriptions – bringing total subscribers to 4.7 million, nearly halfway to its 2025 goal of 10 million.

A shortfall in revenue, though, and a warning of greater challenges ahead, took nearly 20% off the Times share price on Wednesday. That came days after amending a headline related to the president’s response to two mass shootings over the weekend failed to stop a barrage of criticism, much of it from Trump’s Democratic opponents, and calls on social media to cancel subscriptions. The top-line miss had nothing to do with the headline skirmish, whose impact would appear in this quarter. But they are not unrelated. The risk for the Times is that any whiff of normalizing its coverage of the president might damage the brand that has fueled its subscription drive since 2016. One dopey headline is survivable, so long as the war shows no sign of ending.

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MMT is not going to go away.

MMT May Be Democrats’ Economic Cure, But Only Trump Got The Memo (R.)

From her home overlooking Setauket Harbor on Long Island’s North Shore, a motorboat bobbing at the dock, Stephanie Kelton hopes to revolutionize how the U.S. government manages the economy. It isn’t always a pleasant task. A key figure in the “Modern Monetary Theory” economic camp, her assertions that the federal government could spend freely for things like a jobs guarantee or Green New Deal without risking runaway inflation, a debt default or a clubbing by global creditors have been Twitter-bombed by mainstream economists as left-wing free lunchism. Proponents of MMT have been called fanciful for the notion that the U.S. Congress, which typically struggles to pass an annual budget, could with smart budgeting and regulation take over the Federal Reserve’s job of controlling inflation.


And even Kelton, an economics professor at Stony Brook University in New York and an adviser to Senator Bernie Sanders’ presidential campaign, is a bit thrown by the fact that the person who appears closest to accepting her argument is President Donald Trump, whose Republican Party has traditionally touted an adherence to fiscal discipline. Trump and Republicans in Congress, she said, “did not allow perceived budget constraints to stand in their way” of a $1.5 trillion tax cut package which was passed in late 2017 and pushed the federal debt beyond $22 trillion. Democrats now seem ready to get in the game. Lawmakers from both parties recently reached a federal spending deal that is expected to raise the federal deficit by $2 trillion over the next two years, and Democrats lining up to run against Trump in 2020 have largely avoided talk of fiscal restraint so far in the campaign.

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Told ya: “One Conservative insider said that Cummings had in effect demanded control over Johnson’s operation as his price for entering government..”

New Rebel Bid To Halt No-Deal Brexit Amid Fury At PM’s Enforcer (G.)

Rebel MPs are working on a plan to thwart Boris Johnson pursuing a no-deal Brexit on 31 October that involves forcing parliament to sit through the autumn recess, amid growing outrage about the power and influence of his controversial aide, Dominic Cummings. The cross-party group of MPs is looking at legislative options with mounting urgency because of the hardline tactics of Cummings, who one Conservative insider described as running a “reign of terror” in No 10 aimed at achieving Brexit on 31 October at any cost. Three MPs have told the Guardian that one method under discussion is for members to amend the motion needed for parliament to break for party conferences in mid-September.

This could give MPs another three weeks of sitting time to stop a no-deal and potentially open the door for days to be set aside for rebels to control parliamentary business. The ultimate aim would be to pass a bill forcing the government to request an extension to article 50 from Brussels. Since joining Johnson’s administration, Cummings has told government advisers that No 10 stands ready to do whatever is necessary to bring about Brexit on 31 October – deal or no deal. This could include proroguing parliament, or ignoring the result of any no-confidence vote in Johnson and calling a “people v politicians” general election – to be held after the UK had left the EU.

However, it is understood that alarm is mounting within No 10, among some special advisers and Tory MPs about the scale of Cummings’ influence and willingness to defy parliament. One Conservative insider said that Cummings had in effect demanded control over Johnson’s operation as his price for entering government and proceeded to sideline more moderate advisers, such as ex-City Hall stalwart Sir Eddie Lister, while installing a team of “true believers” in hard Brexit largely from the former Vote Leave campaign.

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Are you sure?

Deal Or No Deal? It’s Not Really Up To Dominic Cummings (G.)

Yet it would be as much of a mistake to dismiss Cummings as to exaggerate his mastery. He has certainly brought two weeks of focus to the Johnson government by making the Halloween deadline a non-negotiable centrepiece. He has changed the political conversation from Brexit or people’s vote to deal or no deal. Depending on events in the early autumn, he is clearly gearing up for a possible general election shortly afterwards. But Cummings does not control events. He is not Prospero, able to conjure up a tempest that delivers his enemies into his hands. He is having a good run, but he is helped by the most irresponsible parliamentary summer recess of modern times.

Even now MPs should be aiming to get back to Westminster and hold the government to account before the planned return on 3 September. They should scrap this year’s party conferences too. Cummings is also only one player. The idea that he pulls all the strings is lazy and wrong. The Brexit outcome depends on a tangled web of interests and influences beyond his control. These include everything from the role of the Queen to the hoarding of toilet rolls. In particular, it depends on events in the real economy, in parliament, in the courts, in Northern Ireland, Scotland and the Irish Republic, in the EU and in Johnson’s own head.

Those who take a Cummings-fixated view of the options find it is easier to forget this. They say the government’s aim is to crash out with no deal on 31 October and nothing will stand in the way. But that is not quite what Johnson and some of his ministers say. They say, still, that a deal is one possibility, perhaps a remote one, and that the UK government is even now looking for a deal with the EU in the next 12 weeks.

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“..people whose incomes sit a few zeroes above their value to society.”

The Super-Rich Have Made Britain Into A Nation Of Losers (G.)

Think of a football stadium. Not one of the vast caverns like Old Trafford or Wembley, but somewhere rather smaller and more bijou. Somewhere like Fulham’s Craven Cottage, which, once its new stand is completed, will pack in only about 30,000 fans. Now imagine this stadium of 30,000 souls rising up into the air and hovering unnoticed over central London. Thirty thousand men in late middle-age living the high life with the capital at their feet – and there, stuck way below on terra firma are their 66 million fellow Britons, tearing lumps out of each other. Congratulations: you’ve just pictured the central problem stalking the UK today. Not Brexit. Not the breakdown in civil debate. Not the dark money contaminating Westminster.

These are urgent and vitally important, but there is one big factor that forms a large part of the backdrop to all of them. It can be summed up by that gulf between a mid-sized football stadium of super-rich men in their 50s, and the rest of us spread out across our suburbs, our towns, our unpretty stretches of urban sprawl. That football stadium represents the top 0.1% of earners in the UK. To join their ranks, numbering just 31,000, you’d need a taxable income of at least £650,000 a year – £12,500 per week. In less than a fortnight, you would easily pull in more than the average Briton makes as taxable income over a whole year. But then, those drudges are the earthbound while you, as the old song out of Mary Poppins puts it, live in an entirely different realm: “Up to the highest height! … Up through the atmosphere! / Up where the air is clear!”

The stratospherically rich are among the subjects of a new report by the Institute for Fiscal Studies. An analysis of the tax returns of the highest earning Britons, it shows in uncompromising detail just how our money has ended up in fewer and fewer hands based in less and less of the country. Almost half the super-rich live in London and nearly 90% of them are men. What’s more, they often end up paying a lower tax rate than the pay-as-you-earn mugs like you and me. The generous breaks given by politicians to encourage entrepreneurship, innovation and risk-taking are instead exploited by partners in City law firms and big accountancies and at hedge funds – people whose incomes sit a few zeroes above their value to society.

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It’s not just the 737 MAX. It’s Boeing itself.

Airlines Complain Boeing’s Production Standards ‘Way Below Acceptable’ (BI)

Airlines flying Boeing’s 787-10 Dreamliner have complained to the plane maker about “unacceptable” production mistakes and inconsistent quality. The problems center around Dreamliners built at Boeing’s North Charleston, South Carolina, factory, according to a report from The Post and Courier. Issues at the North Charleston plant were reported in April in a comprehensive New York Times investigation, which found evidence of shoddy production, poor oversight, and a culture that “made speed a priority over safety.” The report came a month after Boeing’s 737 Max jet was grounded worldwide after the second fatal crash in five months. The Department of Justice expanded an inquiry into the 737 Max to include issues at the North Charleston factory in June.


The new report surfaced complaints from a global cadre of airlines that fly the jet and have received orders from the South Carolina plant, one of two locations where the Dreamliner is assembled — other orders are built at Boeing’s Everett, Washington, factory. While the issues are not limited to either the South Carolina plant or the 787 — similar problems have been raised in Everett with both 787s and military tankers — the complaints surfaced by The Post and Courier focus on recent deliveries of Boeing’s newest and largest variant of the Dreamliner, the 787-10. It was not immediately clear whether the airlines made similar complaints about other variants of the plane, including the 787-8 and 787-9.

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Paul Craig Roberts on an FBI document that talks about “official” and “prevailing” explanations of events.

“What the FBI report does, intentionally or unintentionally, is to define a conspiracist as a person who doubts official explanations.”

An Open Invitation to Tyranny (PCR)

The FBI document says that conspiracy theories “are usually at odds with official or prevailing explanations of events.” Note the use of “official” and “prevailing.” Official explanations are explanations provided by governments. Prevailing explanations are the explanations that the media repeats. Examples of official and prevailing explanations are: Saddam Hussein’s weapons of mass destruction, Assad’s use of chemical weapons, Iranian nukes, Russian invasion of Ukraine, and the official explanation by the US government for the destruction of Libya. If a person doubts official explanations such as these, that person is a “conspiracy theorist.”

Official and prevailing explanations do not have to be consistent with facts. It is enough that they are official and prevailing. Whether or not they are true is irrelevant. Therefore, a person who stands up for the truth can be labeled a conspiracy theorist, monitored, and perhaps pre-emptively arrested. [..] Consider Russiagate. Here we have an alleged conspiracy between Trump and Russia that was the official prevailing explanation. Yet, to believe in the Russiagate conspiracy did not make one a conspiracy theorist as this conspiracy was the official prevailing explanation. But to doubt the Russiagate conspiracy did make one a conspiracy theorist.

What the FBI report does, intentionally or unintentionally, is to define a conspiracist as a person who doubts official explanations. In other words, it is a way of preventing any accountability of government. Whatever the government says, no matter how obvious a lie, will have to be accepted as fact or we will be put on a list to be monitored for preemptive arrest. In effect, the FBI’s document reduces the First Amendment, that is, free speech, to the right to repeat official and prevailing explanations. Any other speech is a conspiratorial belief that can lead to the commission of a crime.

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The judge says she can pay the fines, but he’s the only one who thinks that.

Chelsea Manning Jailed For a YEAR For Refusing To Testify Against Assange (RT)

Refusal to testify against WikiLeaks is costing whistleblower Chelsea Manning over $400,000 in fines and another year in jail, after a federal judge ruled that she must pay for what he called contempt of court. Manning was jailed for refusing the subpoena to testify before a federal grand jury seeking additional charges against WikiLeaks and its co-founder Julian Assange, currently imprisoned in the UK. To compel testimony, the government also fined the whistleblower $500 a day, going up to $1000 after 60 days. Judge Anthony Trenga of the federal district court in Alexandria, Virginia shot down Manning’s motion to reconsider sanctions on Monday, the final chance to contest the steep fines.

After a review of “a substantial number of financial records documenting her assets, liabilities, and current and future earnings,” the court found “that Ms. Manning has the ability to comply with the Court’s financial sanctions,” Trenga wrote in his ruling. Though Manning is now deeply in debt and unable to work while in jail, the judge nonetheless concluded the fines were payable and therefore amounted to “coercive” sanctions allowed to compel cooperation or testimony, rather than being a purely punitive measure. “I am disappointed but not at all surprised. The government and the judge must know by now that this doesn’t change my position one bit,” Manning said in response.

She insisted that the fines were in fact punitive, because her inability and unwillingness to pay rendered any “coercive” aspect moot. She has already spent 147 days behind bars and owes $38,000 in fines as of August 7. If she remains jailed for another year, Manning could end up owing $441,000 to the government.

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Not everything scales up.

Tightening Nickel Supply Threatens Electric Vehicle Boom (SH)

For Tesla and its chief competitors in the race for global domination of electric vehicle sales, it ain’t all about lithium ion. There are other valuable metals needed to make the battery packs do what’s asked of them, with nickel being essential. Tesla and its battery producer partners, and other automakers and their suppliers, are worried about the longer-term supply of nickel according to a new study by BloombergNEF. The study predicts that EV makers will be driving demand for nickel about 16 times to 1.8 million tons in the next years. Class-one nickel, a high-purity material used in batteries, is expected to see demand greatly outstrip supply in the next few years. That will be fueled by meeting the large Chinese EV market, and other global markets where demand is expected to grow.


That need for class-one nickel will outstrip supply within five years, according to the study. One problem has been a lack of real investment in new mines for materials including nickel, Tesla’s global supply manager of battery metals, Sarah Maryssael, said at a Washington meeting in May. That could drive up prices as battery demand increases greatly. Tesla CEO Elon Musk is concerned about having enough economically viable — and available — metal to continue meeting its growing electric car demand. That will take off even more as the company taps into China’s booming markets. “They are getting ready to have the new factory in China, and are at full capacity in North America,’’ Peter Bradford, chief executive officer of nickel producer Independence Group NL, said. “They recognize the biggest risk from a strategic supply point of view is nickel.’’

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Kind of mad that this didn’t stop America from sending its young people to be killed and maimed in more jungles and deserts.

Apocalypse Now: Final Cut (G.)

‘Someday this war’s gonna end,” is the sage comment from surf-crazed Wagner enthusiast Lieutenant Colonel Kilgore, brusquely played by Robert Duvall. In fact, when Francis Ford Coppola’s grandiose epic masterpiece Apocalypse Now was first unveiled in 1979, the Vietnam war had only ended four years previously, and the succeeding Cambodian-Vietnamese war (where the film’s climax is set) was in full swing. Coppola’s bad trip into south-east Asia was co-written by John Milius with narration written by Michael Herr. It was inspired by Joseph Conrad’s novel Heart of Darkness, Herr’s own Vietnam reportage-memoir Dispatches and maybe at one further remove by Rudyard Kipling’s lines about the US taking up the white man’s imperial burden.


It was famously an ordeal for all concerned. The production involved a filming expedition in the Philippines that felt hardly less colossal and traumatic to the participants than the actual war, though it became commonplace in Hollywood’s Vietnam for the anguish of American soldiers, not that of the Vietnamese people themselves, to be seen as important. (The nearest that Vietnamese people get to actual importance in Apocalypse Now is the four South Vietnamese intelligence officers, executed by ColKurtz as Communist spies, whose ID cards we briefly see.) Like Lawrence of Arabia, moreover, this is a film without women – or mostly.


Marlon Brando in Apocalypse Now. Photograph: Allstar/United Artists

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“The study found that American agriculture has become 48 times more toxic to insects over the past 25 years and pinned 92 percent of the toxicity increase on neonicotinoids..”

Explosion of Toxic Pesticide Use Causes Insect Apocalypse in US (CD)

The rapid and dangerous decline of the insect population in the United States—often called an “insect apocalypse” by scientists—has largely been driven by an increase in the toxicity of U.S. agriculture caused by the use of neonicotinoid pesticides, according to a study published Tuesday in the journal PLOS One. The study found that American agriculture has become 48 times more toxic to insects over the past 25 years and pinned 92 percent of the toxicity increase on neonicotinoids, which were banned by the European Union last year due to the threat they pose to bees and other pollinators. Kendra Klein, Ph.D., study co-author and senior staff scientist at Friends of the Earth, said the United States must follow Europe’s lead and ban the toxic pesticides before it is too late.


“It is alarming that U.S. agriculture has become so much more toxic to insect life in the past two decades,” Klein said in a statement. “We need to phase out neonicotinoid pesticides to protect bees and other insects that are critical to biodiversity and the farms that feed us.” “Congress must pass the Saving America’s Pollinators Act to ban neonicotinoids,” Klein added. “In addition, we need to rapidly shift our food system away from dependence on harmful pesticides and toward organic farming methods that work with nature rather than against it.” According to National Geographic, neonics “are used on over 140 different agricultural crops in more than 120 countries. They attack the central nervous system of insects, causing overstimulation of their nerve cells, paralysis, and death.” With insect populations declining due to neonic use, “the numbers of insect-eating birds have plummeted in recent decades,” National Geographic reported. “There’s also been a widespread decline in nearly all bird species.”

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Amazon: ~2,700,000 sq mi (7,000,000 km2)

Contiguous US: ~3,100,000 sq mi (8,000,000 km2)